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To: pallmer who wrote (4017)	12/13/2002 2:13:51 PM
From: Softechie	Read Replies (1) \| Respond to of 29600

Gold Rush : Gold futures have rallied to their highest level in over three years, as investors seek shelter in the metal amid growing concerns over the threat of terrorism; the possibility of war with Iraq, North Korea's decision to reactivate a nuclear power station, renewed declines in the stock market and a weak dollar. Not surprisingly, gold stocks are also on the rise. For the second straight week, metals sector to be among the very best performers. Given that the global geopolitical situation is likely to remain tense for at least another month and that the dollar is breaking down against the other major currencies, Briefing.com expects gold to retain its luster for at least another several weeks. That's not to say that after a couple strong weeks the metals stocks won't experience a little backing and filling in the days just ahead, but the overall backdrop and improving fundamentals should continue to underpin the sector. Aside from benefitting from its safe-haven status, investors need to realize that gold group also benefitting from reduced and more orderly central bank selling, more favorable demand/supply equation, and less active hedging on the part of companies. These factors, in addition to the soft dollar, will continue to support gold shares even if/when the global political tensions ease. There are several ways for investors to play the gold rush. Obviously you can buy the metal itself, though most investors opt for less pure methods of investing in metals. Probably the most popular method is the use of Gold/Precious Metals mutual funds - many of which have performed very well over the past couple of years. Individual stocks are also an option, though this method typically results in less diversity and higher risks. Then there's the Philadelphia Gold & Silver index (XAU), which is knocking on the door of its September high of 77.34. Whichever option you feel most comfortable with, Briefing.com maintains that the sector will continue to outperform the market over the short- to intermediate-term. Consequently, investors will want to use any corrective weakness in the days ahead to consider upping their exposure to gold. -- Robert Walberg, Briefing.com