Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Richard Mazzarella who wrote (38713)	8/10/1999 10:46:00 AM
From: Robert Rose	Read Replies (7) \| Respond to of 116770

Confessions of a gold convert: <There's money out there with no place to go, the stock market's currently spooky and interest rates are rising. Maybe gold's a ?new idea? under the current circumstances? > I'm the perfect example. For the last 20 months, I've invested in internet stocks exclusively. It's what I knew, and needless to say, I profited from it. However, after watching the hot air baloon of my portfolio deflate 45% from mid apr to mid june, I began liquidating. As of last week, I was 99+% cash. I was faced with watching the paint dry as my money market funds earned interest, or looking for alternative investments. I don't know too much about gold yet, but don't see a lot of downside here. All fundamental factors point upward. So it seems like the time to venture out from the internets and learn about a new investment arena. Bot 4k nem yesterday 20 3/8. Bot 4k more nem today 20 5/16. Any comments?

To: Richard Mazzarella who wrote (38713)	8/10/1999 8:18:00 PM
From: Alex	Respond to of 116770

From Kaplans' site.............. <<MERRILL LYNCH RECOMMENDS PURCHASE OF FOUR SOUTH AFRICAN GOLD MINING SHARES: A report from Merrill Lynch released on Tuesday, August 10, 1999, stated that sentiment in the gold market is changing and the gold price should rise in the short term providing that contangos remain low. Merrill Lynch said this could be a good opportunity to buy gold shares, and recommended Gold Fields Ltd. (GOLD) and Harmony (HGMCY). For higher risk players, they recommended Randfontein (RNDEY) and Durban Deep (DROOY). [Three of the four are in my model portfolio; I have hesitated to recommend Randfontein because it does not yet have a liquid market outside of Johannesburg.] Merrill Lynch said the change in sentiment toward gold comes amid two pieces of bullish news: first, the IMF is reconsidering the sale of 300 tonnes of its gold reserves to fund debt relief; second, since April 1999, 1-year forward gold lease rates have climbed from 1.5% to 4.0%. Says Merrill Lynch, "There is clearly a tightness in the market, which has driven up the lease rates to current levels. Reasons for this tightness are unclear at this time, but could be caused by stronger industry demand for gold, or a lowering of supply from central banks." The report said the lower contango [the difference between the price for spot gold and for gold futures in any given future month] provides less of an upside for producers to hedge, as the forward curve has been halved in the last 4 months. "For short sellers, a lower gold contango of 2% means that it is less attractive on a risk reward basis to sell gold. They may take profits." >> goldminingoutlook.com