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: F. Evans who wrote (42216)	10/5/1999 7:57:00 PM
From: Tunica Albuginea	Read Replies (4) \| Respond to of 116753

F.Evans:I am getting ready for the next ride: $290 to 328+ ? That ought to be another wild ride!!!!! Fed watching.....inflation surging....Fed still watching... thinking......more inflation of printed greenbacks...... Washington bickering.......CNBC pontificating...... Gold surging ...and surging....... Sounds good to me Frank. When do we start? <ggg> back later TA Message #42216 from F. Evans at Oct 5 1999 7:28PM Rarebird..... >>We must close above $328 today<< That didn't happen. How does that change your outlook if it changes it at all? I firmly believe that gold has moved a bit to fast..(albeit because the panic shortcovering)...in my opinion, (and I do not profess to be a gold bug), I see it taking a bit of a breather for the next few sessions as it retraces back towards the $300.00 level, possibly down to some $290 support...if and IF, she wants to blow higher, this retracement will be healthy for the next push upward. Remember, it did come down sharply off it's 24 high to close up just over $6. Gold stocks got sold off sharply at the close which could spill over into the morning trading.... comments anyone? Frank

To: F. Evans who wrote (42216)	10/5/1999 11:58:00 PM
From: Rarebird	Respond to of 116753

< How does that change your outlook if it changes at all > Things have changed quite a bit over the last week. The POG is now selling at a nice premium to the XAU. The key here is knowing why this is the case. It's not because investors believe that the POG won't hold at these levels. IMO, a Y2K Gold Premium is presently being built into the Market. Usually, it's Bearish when the Yellow Metal trades at a premium to the XAU. But these are not usual times. I expect the premium here to widen as the Year winds down. Gold is an alternative currency and investment vehicle. The gold shares are still ultimately paper assets. Will investors sell their shares for the Physical as Y2K approaches? It's a possibility. The Sell Off in the XAU was primarily due to ABX, which makes up about 29% of the XAU. I'm sure you know by now that Ashanti Goldfields received a margin call today. You know how Wall Street works: they indiscriminately sold off all the big hedgers, like ABX. It was a nice excuse to take profits. This is a Bull Market in Gold: last Octobers high was clearly taken out by the POG and marginally so by the XAU. There will be some volatility on the downside too. But I would buy the dips in this Market now. Let the bears growl all they want. The whole landscape has now changed. I wouldn't get overly concerned unless the XAU breaks below 77.