At a bottom now for gold? Message Board

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Gold/Mining/Energy : At a bottom now for gold?

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To: Gabriela Neri who wrote (1179)	6/20/1998 1:07:00 AM
From: ahhaha	Read Replies (1) of 1911

It actually isn't all that difficult to catch a reasonable bottom in the metals because it's an assessment of emotions call. Both gold and silver are doing this now, but you don't go in just yet. There are gaps to be filled. Admittedly in an emotion packed precious metal move you don't need any gaps filled, but sentiment hasn't moved enough to convince the bigger buyers to slow sales and reverse strategy. I like the metals for structural reasons, not for supply/demand reasons. If industry and jewelry was all there was in it, I wouldn't bother. It's a dirty business like oil. Without terror to make it go, there are better things on which to throw away money. However, if you want to hold for the long term which is unheard of in precious metals, it can't hurt to invest in mining companies which don't forward sell, who have low production costs at any grade, and which have cash resources to get from here to there. Such companies exist at bargain prices but only in the kind of environment that we find ourselves in now. This approach is certainly contrary.

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