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

To: Enigma who wrote (19353)	9/20/1998 8:13:00 AM
From: Alex	Respond to of 116764

Bullion is down, but not out P Vecchiato Business Day, 16 Sep 1998, p 12 The longer-term cyclical nature of gold should not be forgotten during gold's resurgence as a store of wealth. The current upswing in the gold price is part of an overall historical trend. Analysts expect gold to continue to regain its place as a foremost store of wealth as the world financial services sector sorts itself out, and then the pendulum will swing back. Gold production as a percentage of South Africa's gross domestic product fell to 3.7% in 1997 from its heyday of 16.7% when the metal hit a record high price of $800/oz. Gold shares listed on the Johannesburg Stock Exchange make up only 5% of its turnover following the spate of mergers and consolidation in the industry. The production of gold has fallen to 400 t/y from the 600 t/y in 1995. Gold shares are also less available to South African investors than in the past. Seven mines have been delisted in 1998 and absorbed into the newly created mining houses of Anglogold and Gold Fields Limited, where the shareholdings are dominated by institutional investors, leaving 15 operations that may be more accessible to the ordinary investor. One of the reasons for the bearish outlook on gold is the perception that it has lost its special status as a haven in times of trouble.