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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (1958)	5/27/2003 10:56:50 AM
From: zonder	Read Replies (1) \| Respond to of 4912

There's been some forward selling to say the least Then it is not surprising that gold miners have not appreciated in parallel with the appreciation in the price of gold. When I was saying it was mostly dollar related, I was referring to the latest rise off the lows. Yes. And of course it is "dollar related" in the sense that once people realize the Fed actually wants USD to go down, they'd rather hold gold. What has the POG done in the last two months against the Euro? I am not aware of any EUR chart of gold prices. Please don't make me graph one :-) In the figures I cited in the earlier post (USD down 11% while gold up 19% etc), the difference (not arithmetic, of course) is the increase in EUR gold prices. Someone showed me a long term chart of gold and silver production last night and it was bizarrely inverse to the price of gold. In other words when the price was low production was way up and as price rose off those 20 year lows production is falling Isn't that normal? That price should decline as production ( = supply) increases, and vice versa? This tells me they can't ramp up in a higher price environment. Again, I am no gold mining expert, but I have had the chance to study some commodity metal producers. What I have seen in their modus operandi was that as prices start coming down, they would cut back on production. This is logical, because they basically have this reserve of metal that is not going to be renewed anytime soon, and it would be more intelligent to try to sell it for the higher price, six months from now if not today. I suspect the same would apply to gold. You have to think that maybe their costs are rising along with the price of gold. I would be VERY surprised. Which costs of gold miners would rise in correlation to the price of gold?