Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jrhana who wrote (26448)	1/6/2004 11:23:17 AM
From: Salt'n'Peppa	Respond to of 39344

Gold set for massive 2004 gains mips1.net By: Daniel Thole JOHANNESBURG – Gold may be headed as high as $600/oz by the end of the year as the dollar sustains its current weakness and the market continues to push the metal higher in wild, uncertain market conditions. Gold hit a fifteen year high in afternoon trade yesterday, building on Monday’s $9 surge to trade as high as $430,25/oz. Absa economist Chris Hart said his personal view was that gold could end the year at levels between $550/oz and $600/oz, with the dollar as weak as $1.50 to the euro. Absa’s house view is that gold will gently appreciate to $450/oz. Hart said the primary trend for gold is up, even if there is a retracement in the price in the short term. “The primary underlying trend was started in February 2001, when gold turned at $254/oz,” Hart said. Hart said that the retracement was likely to see gold consolidate under the $420/oz level. Hart said the bull trend should be viewed in terms of years, not months, as the horizon for dollar weakness was two years. “Gold will have to show major losses before the bull trend can be questioned. The twin deficits in the US – on the current account and the budget deficit will not be resolved for some time, and this is an election year – I can see the problems continuing,” Hart said. He said there was also a danger that the key central banks which have been supporting the dollar – Japan and China, will exhaust their capacity to support the greenback. Tradek gold analyst Nick Goodwin said the market could push gold as high as $460/oz, as the markets continued to push the metal higher, building on the momentum that gold had developed over the last few days. But he warned that as the rate of change in the price increased, so did the risk. “The market is dangerous, its very difficult to say where to turn,” Goodwin said. “Both the dollar and gold have been driven too far, too fast.” Goodwin said the levels which gold had turned weaker at previously had been breached rapidly this week, leaving the market with few pointers on how to trade. He said there was now “a vacuum” in the market which may be filled in these “treacherous market conditions” - until gold hit $464/oz, the level it traded at in June 1988. That level was reached as bullion traded down from its December 1987 levels around $492/oz. Goodwin said the dollar weakness had been overdone. “Nothing falls out of bed all the time – the dollar should go to $1.35 and then come back,” he said. He said that the last few months had seen the funds gorge on gold and other commodities, but their faith in gold was supported by the long term bull trend that the metal was in. “There is a lot of euphoria around gold, there is also not a lot to buy for fund managers,” Goodwin said. Goodwin said the other positive for gold was that the US did not really care about the sliding dollar, as it would facilitate ease the trade deficit and allow the US to reduce its debt.

To: jrhana who wrote (26448)	1/6/2004 12:06:54 PM
From: TrueScouse	Read Replies (2) \| Respond to of 39344

<<I like the fact that RTZ seemed happy to accept ANO.u stock as payment>> Also that RTZ is still to spend major exploration dollars on the other ANO properties... A lot depends on your time horizon and your view of the length of the gold bull. IMO ANO will be worth several times the current valuation within a couple of years. Not just ANO but lots of the juniors. Many of us have forgotten or never experienced what can happen in a major POG bull market. Regards, Howy