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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (4886)	10/17/2001 4:01:59 PM
From: Box-By-The-Riviera™	Respond to of 33421

i don't think you'll see the evidence fast enough to react after the fact frankly. the dynamics won't allow it. you can take all of the gold minors combined and put them into one or two large market caps out of the entire market. demand of any kind will find limited supply. the metal itself is somewhat besides the point. the example being: in the case of NEM, every 10 dollar rise in the price of gold at this moment in time equals 30 million dollars to the bottom line... a modest rise to 350 in gold from here historically speaking would be a 1.8 billion dollar windfall to a company like NEM... extrapolate that out to effcicient juniors who've learned to keep going under the harshest of conditions over the last 20 years... and the impact is quite enormous not only operationally, but in the value of their proven reserves particularly when those reserves are fully unhedged. the temptations are very enormous using this approach, but of course until the price of gold reaches those points, its a non event. it is however, a must be there first scenerio in my view unless you are a great trader as some are. in cases however where investors have been early, their rewards may be increased by capping the tax at 20% when those gains are long term... and potential 20% windfall net profit.