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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: XOsDaWAY2GO who wrote (8672)	10/12/1998 6:29:00 PM
From: wizzards wine	Respond to of 34811

Hi Barb, You would ask about Precious Metals...Well, P&F wise as you probally know the sector is Bull Alert and a few of these stocks have made very nice gains in the past month... Fundamentally theres a big differance between buying stocks that are Precious Metal producers and buying gold, silver ect... One of the main problems with buying gold is that it is often very undervalued in a countries stock piles, and thus can be one thing which a country may sell to raise fast cash or to try and have some control on the overriding market price of gold, for what ever reason's they may have in mind. This was one of the things that got the Saudis in trouble several years back, when they were buying up vast quanties of gold causing demand and the resultant prices to climb. Only thing that they did not count on was that the Good Old USA has the largest reserve of gold in the world and they flooded the market causing the price to drop and the Saudis to loose a great deal of dollars... I for one would not likely buy gold as and investment with the intent of making money on it unless it was perhaps rare gold coins. Production companies on the other hand have fundament cost and a variable and somewhat controlable market price by outside forces, and as such I'd take that into consideration when looking at the cycle of the individual issue. Hope that helps, and it's my opinion... Later Preston