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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (7096)	8/10/1999 11:40:00 PM
From: goldsheet	Read Replies (2) \| Respond to of 82163

When gold bottomed at 275.70 in 1998, the XAU hit 48.89. The recent 1999 gold low of $253.60 came with an XAU low of 56.44. There was indeed a structural change, about a $30 drop in the cash production costs. ABX, NEM, and PDG have made major improvements, so they all can make more profit at $250 today than at $275 a year ago. This explains why the gold stock didn't go lower while gold made new lows, so I agree with your point. My comment was more about the bounce from the bottom, gold is up 2% (258.7/253.6), gold stocks are up 20% (67.78/56.44) All my historical information tells me it should be about 4:1 - so stocks should only be up 8% from the bottom -OR- gold better move a little and get up 5% from the bottom. That's the recent divergence. Today it closed a bit with bullion up and stocks down. Bob Johnson goldsheet.simplenet.com