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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (4659)	7/27/2002 4:36:14 AM
From: Kaena™	Read Replies (1) \| Respond to of 39344

I hope all were able to take some profits before the big correction. I'm sure most, myself included, wished we'd taken more. I'm confident the next leg up for gold to be this Fall. I bought a few shares of Kinross today along with some others. It's not surprising that gold stocks corrected so severely given that they moved so much compared to the modest rise in the gold price. My feeling is that once gold finally breaks through 330, the gold stocks will once again move disproportionately to POG discounting the 360-400 range. A 150-200% increase by year end in the highly leveraged juniors would not surprise me: A widening yield curve as short term rate is held steady as money moves back into stocks from bonds over a brief bear market stock rally. A continued decrease of foreign investment dollars to fill the trade gap. A resumption of the downtrend in the dollar after a brief respite. Growing realization that budget and trade deficits will lead to higher long rates as government will attempt to make up the gap between decreased consumer spending, homeland security and war efforts. Finally bonds and stocks will resume their pre-1995 historic trend of moving in tandem. Gold will be the place to be and gold stocks will have little competition. The makings of a gold stock bubble by the fall of 2003 with a remote possibility of rivaling the internet stock bubble of 1999.