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

To: Stephen O who wrote (25420)	12/12/2003 6:40:14 AM
From: jrhana	Read Replies (1) \| Respond to of 39344

<I think some of the rout in gold stocks can be laid at the feet of the new Gold Bullion Securities that started trading in London on Tuesday. Brokers were selling gold mutual funds> Here's another view: <The securities have been a huge success in the UK, with trade on the first day of the products listing outstripping all trade in the original Australian listed product, which listed at the end of March..... The guys who are buying gold stocks are buying them for different reasons – you buy gold stocks for different reasons than just pure exposure to the gold price,” the trader said........ The trader said there was huge potential for Gold Bullion Securities. “At a conference in New York in November, one of the speakers said that Gold bullion Securities had sold the equivalent of 30,000 ounces in the first six months since listing. The US market is sixteen times bigger –so the potential for growth is huge,” the trader said. The World Gold Council has said it intends to list the securities in the US as soon as possible. He said the securities would boost investor awareness of gold, while making it easier for investors to trade their positions in the metal. “Overall it’s a good thing – the gold market is positive about it. It gives gold exposure and takes away the hassle of trading gold. This way there is no insurance of physical bullion. You buy a share and you own a piece of gold,” the trader said. mips1.net I imagine some will sell shares to buy the bullion equivalent, but I think on the balance a similar product in the US would be a positive for the POG. This in turn should help the shares. However expect the unexpected and beware of the law of unintended consequeces. We shall see.