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

To: bill who wrote (32198)	4/20/1999 1:51:00 AM
From: Alex	Read Replies (1) \| Respond to of 116768

NBN Your Money: Buy, Sell, Hold on gold WebPosted Mon Apr 19 20:33:05 1999 TORONTO - It's been a long time since investors have paid serious attention to the gold sector. But after the recent recovery in other commodity prices, many analysts are saying gold may be next in line. John Embry is one of those industry watchers. John is the Vice President of Equities with Royal Bank Investment Management and says there are a number of companies investors may want to now think of buying -- and a few they may want to avoid. The gold market has been vastly oversold for a long time now, sasy Embry, and is looking for the slightest provocation to begin its recovery. Last September, for example, the index went up 75 per cent in five weeks. And demand for gold is as high as ever --in fact, the fourth quarter of 1998 was the best quarter in history. Embry also says that mine supply is falling. That means the gap between supply and demand will widen and send the gold price up. He says he believes the upside potential of gold is going to be "quite significant" sometime soon. So if you're looking to invest in gold, now is the time. But with so many gold companies hurt by the recent long stretch of low gold prices, there is a very short list of companies left that are in good enough shape to benefit from the gold price surge that may be just a round the corner. But there are a few: •Euro-Nevada •Franco-Nevada •Meridian •Goldcorp All of these companies have either brought in or are about to bring in a very rich, profitable ore bodies that will do very well even in these depressed gold prices. Embry recommends holding on: •Kinross "The company does not have a particularly strong balance sheet," says Embry but could turn itself around with a rise in gold prices, so there is a possibility an investor could make a lot of money if gold goes up. Two companies that have very poor balance sheets and that Embry recommends avoiding are: •TVX Gold •Echo Bay As for Barrick and Placer Dome, Embry says they are already overpriced stocks and so, will not rise significantly in price if the price of gold begins an upward swing. cbcnews.cbc.ca