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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: TheSlowLane who wrote (29937)	3/28/2003 8:15:46 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 36161

Paul, I also began investing in gold as a hedge on growth type stocks, which seemed to be going nowhere. I look only at long term trends and view certain gold mining shares as a safe haven, especially since, as you also have noted, they can protect against a falling value of the dollar. I would hesitate to predict a bottom for gold, since I do not go in for short term trading. But I've seen some comments in the media to the effect that the panic buying of gold, brought on by the war, is over. I'm not so sure. The panic buying began to subside when many people assumed that this would be a short war--a matter of a few weeks at most. Now that we're seeing statements to the effect that the war could last for months, with much heavier costs for the U.S. than had been anticipated earlier, it seems to me that we are going to see not necessarily panic buying but buying to protect against a declining dollar. Maybe that means gold will settle out around $340 or so. But as long as the dollar is under pressure, the trend for gold should be up. Art