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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (1128)	12/7/2003 11:08:52 AM
From: big guy	Read Replies (1) \| Respond to of 48092

I had read that one earlier Wade. That high cost of reserves should act as a double edged sword. The higher the cost of reserves with little new production coming on line should help to maintain or move spot prices higher. I also don't think you can value a gold company like any other company in times like these. Look at the cost of health or life insurance if no claims are filed, a 100% loss. Although some eye must be kept on valuations one must also except gold as a very emotional metal that is usually driven to its limit by mass public participation not conventional financial valuations. Hell look at what internet stocks did a few years ago without a company in the bunch doing anything but losing vast amounts of money. I think we will see a blow off top in gold and gold shares before it is over with the average Joe talking about the metals while buying milk and corn flakes at his local grocery store. I don't know about you but other than here on SI I haven't heard a word spoken about the metals. Did you see the article on Russ Winters thread that says the Chinese were net sellers of US debt last month? The dollar still looks weak to me and I see the CRB at 285 in the next few months taking that into account gold should march higher. My Edward Jones guy was pushing a lot of stocks at the top, since then he has sold a lot of bonds which should be falling out of bed soon. When I here him talking gold stocks and bullion funds I'll be looking to part with my gold. The last phase of a investment cycle comes after a long and steady rise and is always marked buy great public participation. Based on that gold and commodities aren't even close to a top.