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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: PAUL ROBERTSON who wrote (539)	8/7/1998 11:43:00 AM
From: chevalier	Respond to of 81101

The question that needs to be addressed is what is the average cost of production worldwide? In a classic commodity bear market the price of the commodity tends to fall below the cost of production until enough people pack up shop and go into another business. I doubt that we will see gold at $180 as I am sure that a price like that is way below the average cost of procuction. The other question is at what point does one buy the VSE. It cannot go to 0 and already stocks have melted down 90% or so. The juniors have melted down 97% or so before but I believe that the only way this will happen is if the big boards collapse.

To: PAUL ROBERTSON who wrote (539)	8/7/1998 12:03:00 PM
From: chevalier	Read Replies (1) \| Respond to of 81101

I haven't had time to look at the chart on gold, TVX but I just studied the PDG chart and have to question why you think this chart looks like a bankruptcy situation. I see a chart that is nearing a bottom as it is unlikely that the price will fall below $11 support. As well if the recent $15 price holds then a double bottom could be in place. If the next upswing takes out $22 then a breakout has occurred. While it is too early to speculate on a double bottom at $15 it isn't too early to surmise that if someone is a long term investor then buying PDG today would not be a bad idea as the price is maybe a couple of dollars from the bottom. I am using the Canadian chart if you are curious.