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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (48358)	12/29/2005 4:17:41 PM
From: ild	Respond to of 110194

Date: Thu Dec 29 2005 15:31 trotsky (art vandila) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved that's correct, i would expect short term rates to provide the impetus for a re-steepening of the curve. my feeling is that since we're very close to inversion, or rather already have an inversion at the very short end of the curve, gold and gold stocks are already anticipating an end to the rate hike cycle. in addition to this, the changing of the guard at the Fed's helm is imo strongly supportive for gold prices. even though Bernanke has already been anointed a monetary messiah far and wide, the markets justifiably fear he might not be as deft a crisis manager as Greenboink was, even though the latter didn't have any magical powers either. i'm just guessing that Helicopter Dude's confirmation hearing unsettled some people, especially as he didn't seem too sure of himself. Date: Thu Dec 29 2005 15:20 trotsky (knapper@DROOY) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved as to your question of whether DROOY's reserves have changed, the answer is actually yes, they have. the entire company has changed ( the analysis from 1998 is certainly not applicable to today's DROOY, which has far more shares out, and a completely different suite of producing assets, aside from Blyvooruitzigt, which is the only mine that remains from the old stable ) . in any event, DROOY is ,ceteris paribus ( i.e. assuming gold remains firm ) , a good buy at current levels. this is because it is undervalued on both a valuation per oz. of production as well as a valuation per oz. of reserves basis ( discounts vs. peer group, 50% and 66% respectively ) . in addition, note that DROOY's total mineable reserves actually change from quarter to quarter. this is due to the effect of gold price changes on the economics of existing orebodies.