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

To: Canuck Dave who wrote (7109)	1/28/2003 2:50:15 PM
From: Ceedee	Read Replies (1) \| Respond to of 39344

Guess we could see a repeat of 1991 at the Golf War...The price of gold drop drastically after the war started...Stop loss have to be in with a big spread, otherwise you will be left behind with the wind...

To: Canuck Dave who wrote (7109)	1/28/2003 3:41:59 PM
From: BSGrinder	Read Replies (2) \| Respond to of 39344

What is Bush going to say or do that is going to make holders of physical gold want to trade it for dollars? I think the action in the POG is incredibly strong - every down-draft is met within hours by heavy buying. Why do the gold stocks have to match every daily gyration of the POG? The ownership is completely different. The daily up and down motion is just noise. And Jim Sinclair has made a good case that the hedge funds are matching gold purchases with shorting of gold stocks, putting a little further pressure on the stocks. But he also thinks their dump-gold-on-war, cover-shorts ploy won't work. Speaking of a war premium, why do we assume gold will lose its premium when the war starts? The war premium should only disappear if becomes clear there will be no war, or if the war is over. Sure, stocks may soar when the bombs drop - Americans will try to support their stock market in times of crisis, but that doesn't mean foreigners will rush to buy dollars with their gold. They will want gold even more if there is a serious military confrontation between America and the Islamic world. I really like what's going on here in gold. The gold price is still way too low to reflect the crashing dollar and the looming currency crisis. Gold stocks are still a ridiculously cheap call on the future gold price. I'm not selling here. /Kit