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

To: The Street who wrote (66319)	3/21/2001 9:10:31 AM
From: dean poets	Respond to of 116764

Has anybody else notice the spot price of Gold in New York has gotten knocked down on the opening & the close the last few days? Only to trade higher most of the rest of the day.

To: The Street who wrote (66319)	3/21/2001 9:14:30 AM
From: Alan Whirlwind	Respond to of 116764

You're probably right, at least on some miners and explorers. At $300 gold for example I would expect ZPA to double, and they aren't even currently drilling. But the prospect of finding a partner for a property that has had some decent drill results in the past would be much greater. One has to look at all of the angles.

To: The Street who wrote (66319)	3/21/2001 9:15:55 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 116764

if Gold moves 12% then Gold Stocks will move 100% or more Maybe those which have less aggressive hedging programs, or who are completely unhedged, but those companies took the greatest risk, suffered the greatest selling pressure, and should see the highest returns from a rise in the price of gold. However, those who have sold forward are already factoring in steady revenues and earnings from their long-term contracts. A rise in the price of gold does little to change their fundamentals until it becomes obvious that it's a long-term rise they can justify not selling forward into.

To: The Street who wrote (66319)	3/21/2001 9:22:08 AM
From: Zardoz	Read Replies (4) \| Respond to of 116764

if Gold moves 12% then Gold Stocks will move 100% or more That statement is not true... {and I aint talking the comparison between 12% and 100%} the correlation between gold stocks and the POG is not linear. In fact it's almost non-existent. How do you explain 87 when gold stock fell 30% in a few days, and gold remained neutral... or the XAU climbing and gold falling? The ratio between Gold and Gold stocks is Not covariant; analysis of this in the past points to a third higher denominated variable called Monetary supplies. Higher degree variables are also important... and are now controlling the POG going forward. The significant of these variables are only coming to the forefront because of low inflation and low growth. Going forward, do not believe that Japanese reinflation, or US inflationary pressures can save Gold. Monetary policies in the USA are done to mitigate US dollar appreciation. If Greenspan burns M2/M3 lower, the dollar will ramp. But by keeping a close range on them, the POG will go sideways within a range. I had counted on Lower M2 MACD rate changes, but he decided stabilize the Dollar. The Japanese are playing the currency game now, and what may be seen is USA importing inflation. This is a danger sign to growth in 1.5 year time period. In 98 the lowering of rates guaranteed the boom-bust cycles was reinstated. In 2001 the slow meandering of Grenespan will ensure a world market collapses in 2003, with USA being one of the only to survive. Hutch