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

To: Rarebird who wrote (7323)	8/21/1999 9:00:00 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 81213

Rarebird: The excellent performance of gold stocks relative to gold reflects 2 primary factors IMHO: 1) Market expectations that the wave of consolidations and production cuts now occurring in the base metals industries will soon spread to gold miners. 2) High lease rates. Savvy gold investors know that high lease rates and 20-yeAr low gold prices simply cannot coexist very long. Especially at a time when the dollar bull is ending and the CRB is close to breaking out on the charts.

To: Rarebird who wrote (7323)	8/21/1999 2:48:00 PM
From: goldsheet	Respond to of 81213

> The outrageous divergence we are seeing between Gold & the XAU is > very bullish for Gold. This usually happens at major turning > points. I think we are at one those points right now. The divergence isn't very large compared to levels it has reached at market tops. In March 1996, gold was about $400 and the XAU was 150ish, a very low ratio of 2.67, definitely time to sell gold stocks. The average ratio over the last 14 years is 3.75. We are currently at 3.83 close to fair market value. The highest ratio was 5.9 in August 1986 (349.4/59.13) We got close on August 31, 1998 with a ratio of 5.64 (375.7/48.89) Both excellent times to buy. > Technically, I think it would be good for the XAU to consolidate > some more and meander in the upper 60's. I want to see a real solid > base for the next move up. Agreed. As I previously mentioned, I really wanted to see the XAU fill in some of the gaps that it made during its brief pop up. Just like a building, I would rather see a it built from a firm foundation so it could go up higher, instead of collapsing.