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Gold/Mining/Energy : Yamana Resources INC. T- YRI -- Ignore unavailable to you. Want to Upgrade?

To: PSkars who wrote (1188)	4/16/1998 11:33:00 AM
From: Greg W. Taylor	Read Replies (2) \| Respond to of 2346

AMF: I agree with Phil (a pro) there seems to be some strength building on the gold side, with silver looking slightly less definite. I believe that gold's real bottom will continue to be US$300 and that silver should stick above US$6, based on supply/demand and my reading of futures prices. I know of almost nobody who is bearish about gold, although there are few predictions for $400 gold this year. Given the impact of world events which have traditionally run the metal's pricing, who knows. On the silver side, the reviews are mixed, although I would say that silver has more supporters than detractors, with indications that $7 silver is possible within 18 months. The silver market does seem to be shifting into a new, more speculative stage lately, especially given Warren Buffet's announced participation and talk about new technologies involving silver's use in batteries and "film". But it's also a market that is not impossible to manipulate. On the supply side, there is some evidence that there will be increased production beginning in about two years, but, given metallurgy issues and politics in places like Russia, that's not a sure thing. I guess I'd summarize by saying I feel that gold is strengthening, perhaps even ready to lurch upward by 10 percent, and silver's weakly positive. I'd only add that, from a miner's perspective, the key is in the margin on the ounces, a factor which is most dependent on metallurgy, grade and other operating costs. Barrick makes money with $250 gold and Pegasus would have trouble with $350 gold. Here's one of the better sources for the general metals market stuff: kitco.com For what it's worth. Greg