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: Ron Struthers who wrote (1796)	10/6/1998 3:57:00 PM
From: Ray Hughes	Read Replies (3) \| Respond to of 1911

Ron: In the deep recesses of history is visible a very fundamental conflict between the forces for hard money and those for fiat money. Simplistically, there is not sufficient hard money, read Gold & Silver, to facilitate running large economies and world trade. (Besides, producers of Gold & Silver get to call the shots, not bankers, in a hard money system). The consequence of losing the battle against Gold, today, is economic depression. The problems are so big that "they" must constrain gold at all costs, not forget it. Assume that Greenspan, et. al., succeed at maintaining Gold in a $275-305 range. Trading strategy would be to buy optionable gold stocks, e.g. ASA, HM, ABX when a) POG is about $275, b) price of share has corrected, and, c) when option implied volatillity has collapsed. Then await next POG rally and when near $300 sell call options on some portion, not all, of your Gold shares. Presumably, POG then drops back toward $275, share price corrects and implied volatility of option collapses. One then buys back the options or, alternatively, they expire unexercised. Have your cake and taste the icing? Do we outperform Treasuries? Rate of return is higher than Treasuries because risk is higher. But, in case gold goes through $305 ceiling, we get partial gains even if options get called. We've still got the cake, they option buyers eats the icing. RH

To: Ron Struthers who wrote (1796)	10/6/1998 4:05:00 PM
From: GVC	Read Replies (1) \| Respond to of 1911

I am convinced that there is nothing the world governments can do to stave off the inevitable. Things have to run their course and the more they try to tinker with the outcome, the worse it will be, at least for them. The ball is already rolling and, imho, there is nothing anyone on this earth can do about it. The markets and the economy have a life of their own. Clinton was just lucky enough to be the President during the previous years good times and for him or any of his cronies to take credit is laughable. He will have to take the bad with the good now. BTW, anyone else thing the current little correction is over for gold and its on its way to a substantial $38 rally in short order??