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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bobby Yellin who wrote (2770)	11/4/1997 12:04:00 AM
From: Richnorth	Read Replies (2) \| Respond to of 116825

Bobby, Seems that rose-colored glasses will be needed for gold. The news below is at once negative and positive. I would appreciate your take on it. Richnorth ************************************************************* "Gold is no longer the hedge to uncertainty that it once was. Witness the recent event which would normally send money into the sanctity of gold. The Asian currency crisis and then the precipitous decline in global equity markets sparked no gold rush. Simply, portfolio managers can construct synthetic hedges in the futures and options markets more simply and effectively than move into gold. It looks as though gold is devolving to simple commodity status. "That means that to be an effective gold play, production costs become critical. Major producers are shutting down high cost mines and reducing production. The laws of supply and demand will have some arguing that such cutbacks will lead to higher prices. Hey, forget it. Their is enough gold stock piled in Swiss vaults to keep every jeweler happy for a few years. "Does this then mean the demise of the junior gold plays? Not likely. Junior companies are surprisingly resilient. When something goes wrong, they find another way to capture the attention of the market. One only need look at the active list on the VSE to see that many have shifted to exploration for other valuable minerals. Those who stick to gold exploration will focus on the plays that will be cost effective, making them profitable even in times of low prices. The market will be fine."