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Gold/Mining/Energy : Gold Price Monitor

GDXJ 96.06

-1.4%

4:00 PM EST

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To: Zardoz who wrote (23916)	12/7/1998 11:12:00 AM
From: Lucretius	Read Replies (1) of 116762

your logic is slightly flawed here. you assume that because someone is willing to give away property w/ proven reserves below mkt price thus lowering PDG's prodcution costs, that this will put downward pressure on gold cause now, PDG can produce at a lower cost. Such logic would lead one to believe that once prices start falling, they never stop until they hit zero as those in trouble are forced to sell at lower and lower prices and the the buyers buy cheaper and cheaper thus able to sell at lower prices and still keep a margin. Your twisted logic would also seem to suggest that bullmkts will continue indefinately as buyers continually buy aty higher prices from each other thus increasing the cost of production so gold prices would rise to infinity. doesn't work that way either. sorry, but it doesn't work that way. I'd say news like this is actually bullish. the fact that PDG was able to pick up this property so cheap shows the gold mkt is likely sold out. When people are practicallty giving things away... you're always near a bottom. BTW-- opposite works on the top too. when everyone is tripping overthemselves to buy... can we say "internut"?

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