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

To: marek_wojna who wrote (93093)	1/31/2003 6:33:51 PM
From: re3	Read Replies (1) \| Respond to of 116766

ouch ! no reason that they phoned YOU about -g- you sure that was such a bad deal ? i think the stock got oversold today

To: marek_wojna who wrote (93093)	2/1/2003 4:31:45 AM
From: E. Charters	Read Replies (1) \| Respond to of 116766

Gold has moved from 254 to 368. That is 45% increase from it's lowest point in about 2 years or less. But the difference this increase makes in all but the longest term hedged or sold-forward companies is very disproportionate to the increase in metal price. If a company were producing at about 254 dollars per ounce, then their profitability will have increased astronomically by now. Even at 160 dollars costs per ounce, profits may march ahead 140% in this new high price regime. But even more than that, once the gloom of low prices is erased from the investment market and gold shares become interesting again, there is a rush to buy stock and price of equity inflates quickly. This is offset by the rush to sell additional treasury, usually very hard to sell, in order to offset a possible short term bubble. But most seasoned investors know by now that gold price increases are long term things and that the investment climate from here out to the next 5 years will be good in general. EC<:-}