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To: maceng2 who wrote (150346)	2/8/2002 6:10:38 PM
From: pater tenebrarum	1 Recommendation Read Replies (1) \| Respond to of 436258

i fully agree. in that sense the mining stocks remain actually quite undervalued: as you say, they have become much more efficient. take DROOY: it used to have production costs well over $400/oz. NOW it produces BELOW $200/oz. so the effect of the gold price rise on its earnings is much more pronounced than it used to be. and yet, the stock is still far from where it traded a few years ago. probably an after-effect of the long bear market: no-one trusts the bull move quite yet. btw., '77 - '80, DROOY rose from $2 to $52. but that was of course a bubble...-g-

To: maceng2 who wrote (150346)	2/10/2002 12:06:50 PM
From: Earlie	Read Replies (1) \| Respond to of 436258

PB: A sure sign that gold is more than likely to continue to rise (albeit with the occasional pullback) is the rising demand for "shell" companies by folks with "gold plays" in their hip pockets. In the past these fellows have exhibited an uncanny ability to gear up at the right time. (g) Best, Earlie

To: maceng2 who wrote (150346)	2/10/2002 1:48:21 PM
From: Joan Osland Graffius	Respond to of 436258

Pearly, My perception is that during recessions the non gold and silver miners cut back on production and the total gold and silver production declines. For example Phelps Dodge has cut back on copper production and their gold and silver production also suffers. Don't know if this is sufficient to cause a short term supply and demand problems in gold and silver or not. BTW, keep watching the stock price of PD and the current price is ridiculous relative to past recession periods. What is holding up these miners? Joan