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.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (21034)	5/27/2004 11:14:02 PM
From: philv	Read Replies (1) \| Respond to of 81014

Perhaps Canada's most followed Company is Nortel. Nortel at its hay day commanded $120. for one share, making it by far the largest Company in Canada, easily exceeding even our largest banks. When Nortel went up, the Toronto Stock Exchange went up. Of course it crashed, and sits today at about $6. Cdn., a great improvement from it's low of below $1. I only bring up this as an example of how the equity markets are so horribly skewed. The constant mantra is "its about the future". Fantastic growth ultimately culminating in obscene profits. That is how these stocks are sold and traded until the future expectations turn sour. I don't know if Gold stocks as an asset class is any worse than any other. The tech stocks far exceeded any bull run experienced by gold shares. But you are right, the present share prices are discounting a much much higher gold price. My interest in gold is because of what I see as funny money monkey business going on at the highest levels. And when I look at the POG trend from say 1979-80, its present price when adjusted for inflation and relative to say the Dow Industrials, it looks under priced. kitco.com I know many analysts think the major gold stocks are as much as 50% over valued for the reasons you stated. This condemnation could probably be applied to most equities. But of course, gold is going to the moon soon, and the present premium paid for the shares will magically be rectified at that time. Or it may increase. I hope. (g) Stocks are magical you know, they always predict the future, and are not encumbered with the present "mundane accounting criteria". I know that because I heard it on CNBC, and those guys on CNBC know stuff.