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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (25511)	12/16/2000 9:37:32 AM
From: Clappy	Read Replies (1) \| Respond to of 65232

Hi Ike, gold is the opposite play of everything on this thread. i think one should have a little stock in the opposite of the majority of one's portfolio. I agree with you so much that I have been actually doing homework on the subject over the past month or so. I've even put together a small index of gold stocks to follow. I found this interesting article on gold in regards to a weakening dollar. m1.mny.co.za A snip from it reads: For speculators, this could be the opportunity of a lifetime. Gold mines based in the United States will gain the most out of a weakening dollar, more than South African or Australian gold mines. Buy gold and gold stocks while the dollar is abnormally strong and gold is historically cheap in terms of US dollars. <end of snip> Doing further reading on the subject, I also found out that it is important not to invest in gold mining companies who have a large percentage of their inventory hedged against the rising dollar. For these companies will not see a significant run up as the price of gold rises. It seems that there are a lot of things to consider before jumping into gold stocks. Got any good links? I saw a chart the other day looking like the dollar has made a possible double top. The gold chart is planing off, but not yet based or signaled a buy. The $XAU looks a bit healthier. Often the gold stocks lead the way for the price of gold chart. (At least that is what I read somewhere.) I'm still trying to figure out what a drop in the interest rate will do for the economy. Perhaps it will be a shot in the arm that helps extend this technological boom. Then would gold continue downward? I certainly welcome you to pull up a soap box and shed some light on this subject. Or point us in a direction to find info. Meanwhile, do you think that the Naz is overdue for a leg back up. The selling has been fierce. The bubble is now forming on the bottom. When it pops, it may send us flying upward. Sorta gets me excited... -Clapster