Richard:
I feel your pain. However, although I felt that way the last couple
of days myself, technically I think that we are ok. Remember that
several stocks (Kinross, Barrick among others) have had a major
technical change to the positive. The XAU is also close on a long
term basis as well. What I am referring to is the 10 wk/40 wk
moving averages. Since Aug 1996, for the XAU and most gold stocks
as well as funds, the 10 wk moving average has been dropping and also
been trending below the 40 wk. However, this has changed. The XAU
is close, but the stocks above have already done it.
The 40 wk average has quit dropping, flattened out, and is starting
to rise up. First time in 18 months!!!! Also, for those stocks
mentioned (among others), the 10 week average has crossed above the
40 wk average. In 1992-93, this was a very reliable long term
change to the positive.
I think that we are at about the bottom for this correction both
for gold and XAU. I am about to re-enter the gold funds. Our
pessimism, besides, suggests a contrary opinion move soon.
At http:// www.gold-eagle.com there are some very good links to gold
funds, with very useful info. As of the end of April, 1998 the
combined assets of gold funds was estimated at about $2.9 billion.
Cheers (don't despair)
Dan |
