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

To: Alex who wrote (14194)	7/7/1998 3:27:00 PM
From: Bill Murphy	Read Replies (1) \| Respond to of 116790

Alex, We all have our different opinions on gold. Probably what makes it a good subject. It is an easy one to have an opinion on. Our strongest case, for a big up move in the price of gold, both in the short and long term is a supply-demand one and a good part of that case ( demand ) is the gold jewelry market. T'was nowhere to be seen. Bill

To: Alex who wrote (14194)	7/7/1998 7:18:00 PM
From: goldsnow	Respond to of 116790

Headline: N. America gold shares up, but earnings seen shaky ====================================================================== NEW YORK, July 7 (Reuters) - North American gold stocks rose Tuesday but analysts see few signs of a turnaround from depressed levels, with upcoming earnings expected to be tarnished by the yellow metal's lackluster performance. The Philadelphia Stock Exchange index of North American gold and silver shares <.XAU> was up 3.46 percent at midday, easily outstripping the Dow industrials and other leading stock indices. The gold and silver index was being led higher by Placer Dome Inc. (TSE:PDG) and Newmont Mining Corp. (NYSE:NEM), analysts said. Placer was up C$0.70 at C$17.15, while Newmont gained 8/16 to 23-1/16. "There is no news I am aware of," said Peter Ward, precious metals analyst at Lehman Brothers. "I think we are stuck in a trading range here for a while in gold and (gold) stocks." With bullion hovering at around $295 per ounce, off from $343 a year ago, gold company earnings will be generally "down pretty significantly" from a year ago, Ward said. Earnings are directly tied to the price of the commodity. Earnings at Barrick Gold (TSE:ABX) (NYSE:ABX) are expected to increase because the company hedged forward metal sales, Ward said, but Newmont's earnings "could be down pretty significantly." Barrick ADRs were up 10/16 at 19-3/16. Coeur D'Alene (NYSE:CDE) gained 5/8 to 7-1/4, while Kinross Gold (NYSE:KGC) rose 1/4 to 3-3/8. Leo Larkin, an analyst who follows gold stocks at Standard & Poor's, said low inflation was keeping gold prices depressed. "There is not an awful lot of incentive to buy it at this point," he said. An analyst at J.B. Weere said the Philadelphia exchange gold and silver index has been volatile and today's gains were within the recent trading range, itself near historic lows. "There is not a good risk/return scenario in gold stocks," the analyst said. Investors are unsure what role gold will play in the new European central bank, and the outlook for the metal's price in general is unclear. Copyright 1998, Reuters News Service

To: Alex who wrote (14194)	7/7/1998 7:41:00 PM
From: goldsnow	Read Replies (3) \| Respond to of 116790

"There is not a good risk/return scenario in gold stocks," the analyst said. Investors are unsure what role gold will play in the new European central bank, and the outlook for the metal's price in general is unclear." Substitute "gold stocks" and "metal" for chips and you got a general public line for Intel and others in 1994 (who needs faster chip anyway) INTC up 400% I am for one reasonably sure that if ECB gold holding are deemed unfavorable to POG we would see supply side shrink instantly, as not only investors but producers are also waiting whether to close a shop or not...Thus the curve may be $260 to the $600 rather than $290 to say $500 in 2 years. ECB does not really controll POG other than short-term sentiment (not much different than chips, but with far more profound consequences...Yet I can't see Gold Controlling CB like Germany and France propping-up Dollar...I am reiterating 20-25% gold reserves, POG $350-380 by Christmas...and yes I think that albeit "insurance policy" considerations are all right, the odds that dollar would collapse or even return to the 1994 level are far greater than a house catching fire (even if one lives in Florida)