Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Real Man who wrote (82711)	3/1/2002 7:32:01 AM
From: E. Charters	Respond to of 116767

No stock is ever actually overpriced. It is the price it is. If someone wants to sell it and no one wants to buy it for other than its price, and its price is its only value, then it cannot be overpriced at any price, ever. But if you mean that gold is under its true value as a commodity in intrinsic terms whereas the gold stocks are oversold and cannot sustain their current price in the ordinary market you foresee, then you are still wrong. If the metal is going to get better, then the stocks will too, if they do not anticipate the rise we speak of. Since "they" (stocks and gold) do not today I think "anticipate" or discount, this rise, with the poor gold confidence of late, then we can say that gold stocks and the metal will definitely see better days as the metal "grows" in higher-price stability. (If they anticipated the rise, there would be sudden great rise in the price.) No producer of gold, or mining stock because of the uncertain "repletion"* historically, of the medium producers and the long term price depressions of modern times sells at much more than 20 times earnings. Yet large gold mining companies can manage to make scads of money with great regularity and are very secure industrial bets with very good downturn survival records usually. Their product never needs marketing. Just engineering to recover. And luck to find. So companies like Barrick or Dome are always "underpriced" compared to a manufacturer or service company. *repletion - I mean product or source material replacement. EC<:-}