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To: carranza2 who wrote (876)	10/28/2009 7:59:07 PM
From: Real Man	Respond to of 990

Not really, ultra cheap gold for too long. Gold suppressed by CB selling contributing more than 20% of annual supply for too long. The exploration cycle never kicked in, cause miners never had large profits.

To: carranza2 who wrote (876)	10/29/2009 8:09:46 AM
From: Real Man	Respond to of 990

Gold mania is coming. Whether it will be now or later, I don't know, but there is a potential for a major move in gold this year and early next year. The POS gonna fly. As usual, be careful with it, but accumulate the cheap goldies. All major secular bull markets end with a blowoff, and gold is in one.

To: carranza2 who wrote (876)	10/29/2009 10:33:35 AM
From: Real Man	Read Replies (1) \| Respond to of 990

I'm watching LT trend lines on all SA POS-s AU is in part Australian, I think, about 40% SA-based. GFI, HMY, and the POS all knocked on long term downtrend (from 2002). I'm not sure why these technical lines have such enormous influence, but they do. For example, KGC sat under important level of 12 for a long time, and then it simply took off. Fundamentally they look a whole lot better than they did in 2004-2005. The POS of all POSes, DROOPY, actually started to make money in 2007, got rid of all hedges and debt, etc. A break of LT downtrend happened to the POS in 2001-2002, and you can see the result. The key to their undervaluation is their high cost deep mining operation and the high price of energy in gold, which is bound to change in a mania. Gold/oil ratio has been as high as 30 in the past. The higher the ratio, the more money miners will make. Note how Oil consistently hovered around 40% higher than average, in gold, over the past decade. Last year it actually was undervalued for a brief moment. This does not automatically translate in higher profits, as utility companies will rarely drop their rates. They charge because they can, especially in SA, it seems. This was the key reason miners "lagged" gold - this affects their margins. pricedingold.com Our POS knocked on LT downtrend line in May, and before that in February/March. As silly as it sounds, it could become even more ridiculously cheap until that 9-10 line is taken out. p/e = 10? Sure, why not? Does it matter? No. The Spoos have p/e over 100, and soaring -g-