To: Roebear who wrote (52442 ) 5/28/2000 10:16:00 AM From: Zeev Hed Respond to
Roebear, I think that your approach is quite rational. I fear that "goldbug" are enamored with gold and see conspiracies against them when gold fails to react to event that would have often caused it to rise, failing to do it this time. They are fighting yesterdays battles. The imbalances between supply and demand they cite, and the excessive short position were there in the last rally to $330, but the rally failed to get gold out of its very long term basing pattern. My opinion has been and still is that until we see a major wave of consolidation and elimination of unprofitable players, the background for a secular move up in gold will not , probably, be in place. I have been on SI now for almost four years (how time is flying), and in this period there was one single episode only where gold was worth playing on the long side. It may very well take another four years for the next one. Other sectors provide more volatility worth playing, so, am going to concentrate on these. (g).
