What's driving this movement?
"The current outlook for gold mining shares is SIGNIFICANTLY BULLISH due to the following factors, in order of importance: 1) the volatility in the U.S. financial markets, including several in what will surely be a long series of hedge fund failures, which will spur a small but critical and inevitably growing mass of investors to seek out alternative places to put their money; 2) the successful retesting and recapture of the long-term triple bottom in the XAU, demonstrating that skeptical or non-committed investors finally decided to bail out at the bottom in late August 1998; 3) an accelerating worldwide trend toward cutting short-term interest rates to prevent a severe recession, thus lowering the carrying cost of gold as a competitive investment and stimulating the economy without regard to its potentially inflationary implications; 4) bullish traders' commitments for gold; 5) generally bearish forecasts for precious metals and their shares by major brokerages, as is typical of the early stages of any major bull market following a long-term bear market; 6) traders' commitments in other commodities and financial instruments that correlate positively with gold and which are showing powerful commercial accumulation, including especially cotton, copper, cocoa, unleaded gas, crude oil, natural gas, rough rice, frozen concentrated orange juice, wheat, live cattle, feeder cattle, lean hogs, pork bellies, and short-selling T-bonds; and 7) significant insider buying by corporate executives of gold mining companies." kaplan
Jim
investnbest.netmegs.com |
