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.

Strategies & Market Trends : Fidelity Select Sector funds -- Ignore unavailable to you. Want to Upgrade?

To: Dennis who wrote (1379)	12/20/1998 2:09:00 AM
From: Jim Battaglia	Read Replies (1) \| Respond to of 4916

Dennis! I can not predict the future of gold or precious metals as the world today is just too unpredictable... The charts show that Dec 7-14 was a good week for them. See the chart and my earlier report. quote.yahoo.com What's driving this movement? "The current outlook for gold mining shares is SIGNIFICANTLY BULLISH due to the following factors, in order of importance: 1) the volatility in the U.S. financial markets, including several in what will surely be a long series of hedge fund failures, which will spur a small but critical and inevitably growing mass of investors to seek out alternative places to put their money; 2) the successful retesting and recapture of the long-term triple bottom in the XAU, demonstrating that skeptical or non-committed investors finally decided to bail out at the bottom in late August 1998; 3) an accelerating worldwide trend toward cutting short-term interest rates to prevent a severe recession, thus lowering the carrying cost of gold as a competitive investment and stimulating the economy without regard to its potentially inflationary implications; 4) bullish traders' commitments for gold; 5) generally bearish forecasts for precious metals and their shares by major brokerages, as is typical of the early stages of any major bull market following a long-term bear market; 6) traders' commitments in other commodities and financial instruments that correlate positively with gold and which are showing powerful commercial accumulation, including especially cotton, copper, cocoa, unleaded gas, crude oil, natural gas, rough rice, frozen concentrated orange juice, wheat, live cattle, feeder cattle, lean hogs, pork bellies, and short-selling T-bonds; and 7) significant insider buying by corporate executives of gold mining companies." steven kaplan Jim