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

To: T-Lo Greens who wrote (89991)	9/26/2002 6:09:14 AM
From: IngotWeTrust	Read Replies (1) \| Respond to of 116815

Wld B interested what forms the basis4 Ur didactic assertion. C'mon...give us plebes a clue, purdypreeeze? g_t

To: T-Lo Greens who wrote (89991)	9/26/2002 6:17:15 AM
From: E. Charters	Respond to of 116815

I doubt that. If their product is profitable at present and their share price is based on that, then gold would have to "correct" by 40% for the mine to correct near the same. There is nothing "incorrect" about gold's price. It simply reflects the perceived worth of currency, which we all know cannot increase usually, as long as there is a positive interest rate. There is some speculation written into the gold miners' price, but it is fairly good speculation that gold will continue to rise. There is no more indication that gold miners will fall by any percentage than there is that the general market will fall in other industries. There is a lot less in fact. Other industries are vastly overvalued due to the long term but "unjustified" bull market. The bull market was not due to real industrial growth or earnings for the most part, it was due to money moving into the market. Now that i`t will start moving out, the bull market turns cow. The chickens have and will continue to come home to roost on overvalued stocks. The case in gold mining is quite opposite. Their price was high in the mid 1990's during the resource market boom in Canada. Since Bre-X, and the price of gold and copper fallling, and the decline in the VSE, gold stock prices and exploration bottomed. With the return of gold, more money being available for exploration, and more profitability for producers, their price has risen, as it should. So gold miners will continue rise against the market as gold price increase, which it will. It is far more likely that gold will rise 40% as it has in the past, than fall. If it goes to 420 or more, as is widely predicted, then gold producers will rise a multiple of that, perhaps 80% or more. From 1929 to 1933 the price of gold rose by 60%. Some new mines rose in price by 6500%. EC<:-}