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

To: Crimson Ghost who wrote (61314)	11/27/2000 4:43:51 PM
From: SliderOnTheBlack	Read Replies (3) \| Respond to of 116759

G Cole ? re: <<"The technical action of the gold complex improved a lot last week. Gold stocks vastly outperformed gold bullion. That is the kind of action that preceeds a gold bull. With gold stocks cheap is not enough. But a combination of cheap and good technical action is something else entirely. I hiked my gold fund holdings by 50% last week. ">> George; the technicals looked good a hell of a lot earlier than the 15% move indicated. The OBV & Money Flows were positive for days/weeks before the move started. We reached fundamental valuations to where not just the XAU and the individual stocks were at "alltime" lows - both what you paid for these stocks on a $ per ounce of Gold produced, or reserves in the ground reached alltime lows as well. Given the overall market risk, the unsustainable King Dollar, the break in the US Equity Bubble, the Election debacle - if one was NOT willing to buy the Xau/Golds at these "alltime" low valuations - when would you ? Suppy & demand = shareprices; not technicals, not fundamentals, not valuation metrics.... supply & demand - on its most basic level. Sentiment is the meter for demand. There has been historically bad sentiment towards Gold the commodity AND gold stocks. That equals little demand and the supply is there; so with low demand and strong supply; shareprices plummet to anomalistic lows on a valuation basis. Gold & Gold stocks as a safe haven, as "money" and as a contrarian "hard asset" flight to safety haven - has NOT changed. It never changed in the last 5-6 XAU rallies over the last 15 years either - it merely got to sentiment & valuation lows to where sentiment driven demand got so low that shareprices got so cheap; that when the normal cycle of events unfolded - the XAU/Golds had significant returns. This one will be no different; only the potential of unspeakable "potential" speculative highs - "if" we see an event driven collapse of the derivative/shorts. The XAU/Gold market is small - we never needed a mass bullish level of sentiment in the broad market for the XAU/Gold to rally. Only a small move by a small number of players creates a very big move in the XAU/Golds... we only need a few to flee to safety, a few to see value, and watch a Soros, or a Buffet make a significant move here... a major currency play by a Soros type of player is allmost a given here as well imho. Watch the Bond Market - it's the "man behind the curtain" here... it's the "Bond Market - Stupid" ~