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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (57166)	8/10/2000 9:58:08 AM
From: Fun-da-Mental#1	Read Replies (1) \| Respond to of 116997

"relationship between p.o.g. and xau is long-gone" -yeah, there is a divergence in the last couple years: Price of gold: futures.tradingcharts.com XAU: finance.yahoo.com^XAU&d=2y I put this down to market psychology. I think when gold hit $250 last year investors didn't expect it to last, and in fact saw it as a buying opportunity. When gold went to $330 in October, XAU didn't react much because that's what they expected. They hoped the price would move even higher from there. When it moved down instead they said forget gold. IMO none of this has anything to do with the gold industry's actual future prospects. I don't believe the XAU has much predictive value, it just represents investors reaction to gold's price history. My opinion on this comes mostly from my experience watching the oil market. Analysts and market makers were not leading the price of oil, they were purely reactive. If the market is giving up on gold now, fine. Gold stocks P/Es have long been inflated by hope. If they get squeezed now, that builds a realistic base for the future. (Move over NEM, make way for the South African miners...) This may not be the bottom yet, but I'm betting we're not too far from it. Sorry for the rant, just throwing some opinions out there. -Fun-da-Mental