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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (1873)	8/19/2001 9:42:00 AM
From: TheBusDriver	Read Replies (1) \| Respond to of 4051

<<at these prices and many if not most of the base metal majors will be out of business in a year or two if prices are sustained>> GULP! As you have documented so well in the past gold producers are also having a hard time finding low cost gold that they can make a profit on at current prices. So, what the hell is going on here? I don't think we have seen the worst that the economy can throw at us yet. That part is still coming. Some can argue that gold will rise in these conditions as it is, or soon will, be considered a safe haven again. If the US recession hits as hard as some people think it will how will the base metal producers survive? More importantly why should I invest in base metal stocks such as PLY, given this black future? EDIT: Just saw your post over on PLY thread. Nuf said in that regard. Wayne

To: russwinter who wrote (1873)	8/19/2001 10:34:52 AM
From: que seria	Read Replies (1) \| Respond to of 4051

Strongly agree about base metals; they’re generally a poor bet in an information/service economy unless you’re gambling with a discovery play. I recently took a semi-short flier on base metals by buying a put on FCX, which needs at least these prices for both copper and gold to hold up, and probably falls unless one of them rises significantly. Copper isn’t looking too robust: futures.tradingcharts.com nor is gold futures.tradingcharts.com so I’m forced to recognize the chance that they can just fall through the “floor.” I’ve sought a bit of protection via puts on FCX: Message 16229096. Can't see a rationale for fooling with precious metals unless you think you're buying a stake in a company that digs up something the market does or will treat as money or a benchmark for money, or unless you think you see a coming supply/demand imbalance, as with PGMs a while ago.