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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: big guy who wrote (5375)	12/21/2003 8:02:11 PM
From: Wade	Respond to of 108738

Good questions. Yes, I had a great weekend so far. Only thing bothered me was the SA golds did not hold well in the last few days. But, I think they will be the first to recover at Monday opening. The major reason for the SA golds traded at these low values is strong Rand vs. dollar. That is because they have to pay workers in Rand, which mean their cost of producing gold got too expensive and left no profit for the mining companies. They were forced to shut down marginal mines and lay off workers. Some of them may close doors for good. Lower Rand value vs. dollar give them the room for profit and future investment. Rand is not a component in the US dollar index, therefore, it is a lot easier to re-adjust its value. <if the dollar is going to rise and gold is going to fall in US terms will S/A gold shares rise regardless?> The SA golds can still be very profitable if they can keep Rand at very low value vs. dollar. You can see the SA gold shares traded so high when Rand is so depressed before 02. Have a great holiday. Wade