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To: Michael Watkins who wrote (78788)	3/12/2001 12:50:37 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

Michael, quite right...i remember those failed dojis well. besides, as a look at long term gold index chart confirms, the rallies tend to be runaway rallies when they occur (which is about every 7 - 8 years). this is due to the peculiar way in which unhedged gold producers earnings are leveraged to the gold price. a simple example to illustrate what i mean: assume a miner produces 1m. oz. per year at a total cost of 265 oz. - at an average PoG of 266, the profit before taxes should be $1m. only 4 dollars more, and the profit rises by 400%...and that's why the gold stocks respond so well to even relatively minor rallies in the PoG.