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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: rubbersoul who wrote (17811)	8/8/2006 10:49:08 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 78410

Well P/E is not a valid measure for gold stocks. It is better to use gold in the ground. Of course, there are various categories (quality) of ounces of gold in the ground. But when gold is trading at $650 and you have gold that you know you can take out of the ground at $100 or $200 per ounce, that is much better metric than whatever current profits you are making. I think that it is not possible to say right now if the correction is over or not. There is a decision coming from the FED this afternoon that could change things in seconds. WIll they raise 0.25, 0.50 or will they pause. If they pause and signify easing later this fall, I think it will set the stage for a rally to new highs in gold and stuff. If they raise, then I will bet on a continuation of the correction and a move below last May low.