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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: t4texas who wrote (93604)	8/12/2001 10:13:45 PM
From: Jane4IceCream	Respond to of 95453

I have several gold miners I am holding too and agree with you. Add that tensions are increasing in the ME and we might see more common spikes in our shares like the one late last week that coincided with the suicide bombing in Israel. I agree with Slider et al that there is really only one way the USD can go and that is downward. I am still holding GLG <original positions btw 1.72 and 2.00> and KGC <original positions at .50 and .55> and NEM <original position in low 14's> and GOLD <original position at 4.01 and 4.04>. Sold HM and MDG and AEM early but a profit is a profit. Jane

To: t4texas who wrote (93604)	8/12/2001 11:05:54 PM
From: isopatch	Respond to of 95453

t4texas. Nice post. You focused on some key facts and issues, politely corrected some of Tommaso's, (shall we say) "misapprehensions"<G>, AND you projected a good grasp of the mining process. Tommaso seems to be falling into some of the familiar pitfalls investors are prey to when their understanding of the gold mining sector is very limited. It's all too easy to forget how complex geology, reserve "depletion", the economic life of a deposit, and the considerable lag time required for large new mining projects (now economic ONLY at considerably higher gold prices) to enter the planning pipeline can all delay any quick increase in production even if the gold price were to increase $100 or even $200/oz. during the next 12 months. Folks, I saw a long lag for new projects during the big bull in gold during the 1970s. And though mining technology has improved it hasn't changed all that much. Investors not active during the decade of the 1970s don't know that a lot of heap leach reserves were produced during that period and in the 20 years since. Treating leach heaps to extract the gold isn't a new process. And as a result, there just isn't enough still available above ground to have a significant impact on the supply demand equation for gold price. vs the Dollar and other currencies already showing increasing inflation. For open pit or underground operations, where we do have to look for new supply, it's not like you just contract a couple of rigs and drill your onshore NG wells once you have the geology targeting the resource! What I'm seeing from Tommy is a lot of poorly researched and thought out comments verging on anti-gold cliches. Or, causal generalizations based on an obviously negative bias. Then there's the demand that's surfaced already from investors very aware of the tidal wave of Dollars being created by the Fed. The highest monetary growth rates in 20 years. This will push the price of gold up. The fact that the cash price of producing gold is lower than currrent bullion prices will not as Tommaso erronously claims push bullion prices down. That can only occur when demand is falling. And that ain't happening! Unless Tommaso can approach the gold mining sector with more objectivity and a better grasp of the the points we've highlighted as well as many other factors we just don't have time to tutor him on? It's hard to see how he'd have a reasonable shot at making an objective and unbiased evaluation of the viability of gold stock investments for his portfolio let along post guidance here that would be helpful to prospective investors reading this board. Basically what I see is that he's both negative and uninformed. Not someone to rely on for advice on the gold stocks, that's for sure. JMVVHO of course. Isopatch