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.

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

To: Wyätt Gwyön who wrote (62317)	5/31/2006 12:14:18 PM
From: ild	Read Replies (1) \| Respond to of 110194

What surprises you? Expensive oil is bad, so they project lower oil. If they project higher oil they will have to downgrade the US economy. High gold prices do not hurt anyone. This is what GS said (I'd call it neutral, not bullish): 1) RAISING COVERAGE VIEW TO ATTRACTIVE FROM NEUTRAL, on strong gold market fundamentals and our belief that the performance gap between gold price and equities (at ~20%) should close as companies address supply challenges (lower grades/higher cash cost). 2) FUNDAMENTALS REINFORCE GOLD STORE OF VALUE ABOVE $600/oz, as a structurally weaker USD, in line with GS economists expectations, inflationary pressures, strong net investments, and potential increase in reserves at key emerging market Central Banks provide support. 3) INCREASING OUR GOLD PRICE ESTIMATES to average $635/oz from $600 in 2006, $700/oz from $650/oz in 2007 and introducing 2008 at $710/oz. We have increased our LT term gold price estimate to $425/oz from $400/oz. 4) FAVORITE SECTOR PICKS: ABX (OP/A) & NEM (IL/A), with 32% and 26% upside potential, respectively, as our DCF, CFPS and EBITDA estimate factor higher prices.