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To: Claude Cormier who wrote (7403)	8/25/1999 4:04:00 PM
From: Zardoz	Read Replies (2) \| Respond to of 82268

Mr Cormier: You being a supreme newsletter writer for The Ormetal Report at: ormetal.com {Do I get anything for the plug? Three years free would be nice; I'm saving up to buy gold stocks...} Maybe you can help me and tell me what stocks and their weightings are in the TSE gold and silver index. Seems the TSE wants me to pay $80 just to find out. Talk about robbing an investor. quote.stockwatch.com Hutch PS: I said this before: The XAU doesn't represent the gold markets, but does represent hedging efficiency. A ratio of the XAU/GOX index shows the yields ratio in performance terms. 14% compounded.

To: Claude Cormier who wrote (7403)	8/25/1999 5:52:00 PM
From: goldsheet	Read Replies (2) \| Respond to of 82268

> Freeport which is more base metals than anything else is a large > component and has less to do with gold. It's about 11%, but with 2.6moz of gold production FCX is better gold miner than most gold mining companies ;) Note: FCX doesn't consider gold to be revenue, but applies it as credits to the production cost of copper, resulting in reported costs under 20 cents per pound. > IOW, the XAU is changing overtime. That is probably why it bottomed > at 48 in Aug98 and is now 35% higher. On May 28th, 1998, Placer acquired Getchell and moved up to 13.4% of the XAU, and Anglogold was added at 19.1%. Barrick's percent was cut from close to 40% down to 29.3%. The unintended result is 9 out of 10 XAU stocks are down from May 28th, except AU which is up almost 20%, which results in the XAU being up slightly (65.02/60.87=6.8%). It is ironic - the XAU has been adjusted to include Anglogold and more accurately reflect the gold mining industry, but it gets distorted by the new component. Hecla (.6%) and Coeur (.4%) ought to removed and just call it a Gold Index > The best gems are found in the junior mining sector. Definitely, and you are sure better at finding those than I will ever be !!

To: Claude Cormier who wrote (7403)	8/26/1999 9:58:00 AM
From: sea_urchin	Read Replies (2) \| Respond to of 82268

Claude : Actually I agree with you about the XAU having to be re-rated and have, in fact, expressed such an opinion previously. (#7096) Nevertheless, XAU has moved up a lot in comparison to POG so, even though the XAU/POG ratio may not be what it was, it has discounted a fair increase in the gold price. For what it's worth I have also commented that, compared with other classes of shares eg financials, industrials, other mining etc, SAf gold shares (including the "better" ones) are rock bottom. Apropos the juniors, what in fact you are saying is that each must be appraised on its merits. Still, I think it would require a "mass movement" of all the gold shares to get them going even though there are special circumstances to consider with individuals. That has been my experience with other types of investment.