Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : At a bottom now for gold? -- Ignore unavailable to you. Want to Upgrade?

To: Bobby Yellin who wrote (1773)	10/5/1998 3:51:00 PM
From: Ray Hughes	Read Replies (1) \| Respond to of 1911

Morgy-Dog: Gold analysts are getting laid off left and right. Outta demand and heading back to the pool of unemployed geologists. Not a bullish factor. Bearish factor: numerous fund management companies have (belatedly) decided they won't invest in companies of less than $200 million market cap. Rules out buying junior gold producers, about-to-be producers and exploration companies. This is not necessarily a reflection of any view as to the possible future price of gold but it does withdraw most of the money that, heretofore, was propelling the junior gold shares upward. I will add to Bill Murphy's valid comments that option premiums rise and fall with the anticipation of future price movement of the underlying asset. Hence, a decline in option premium % of the underlying asset can reflect an expectation that the price of the underlying will decline. Hence, a reduction of "contango" can be a bearish technical sign. Contango, or its reverse, "backwardation" must be "read" in conjunction with other indicators. I think the biggest indicator of all is that gold is not already $400, given the markets' turmoil. This says reams of bearish things to me. RH