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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (7673)	12/31/2002 12:03:00 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 306849

if the south african rand is going UP against the dollar, which is similar to the situation with china stocks I own, then that should provide a tailwind and make those stocks go up i think the opposite is true. remember, their costs are denominated in rand but their product (gold) is denominated in dollars. so an appreciating rand cuts into their profits. foreign cos whose products/services and costs are both denominated in local currency are probably more likely to appreciate along with an appreciatio of their currency vs. the dollar. why is gold going up while the stocks like drooy are nowhere near the yearly highs i think DROOY inter alia is hurt by the higher rand--i sold my DROOY a few weeks ago on this concern. some of the other miners are holding up better. i am pretty pleased with NEM's performance. wrt your question in broader terms, obviously there is a correlation between miners and the gold price, but it is not perfect. there is a pretty interesting look at this very issue here: prudentbear.com ("The price of gold goes up, but gold stocks don't, and you don't know why. Or the price of gold stays steady, but gold stocks go down, and you don't know why.")