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Strategies & Market Trends : Precious Metals mutual funds (gold, silver, PGMs) -- Ignore unavailable to you. Want to Upgrade?

To: Dan P who wrote (367)	5/9/1999 5:49:00 PM
From: Larry S.	Read Replies (1) \| Respond to of 972

Dan, et al, Thank you Dan for your analysis of gold funds. Your information is probably more appropriate for this thread and more meaningful than the GMI/GP ratio that I have been posting. Barron's didn't update their GMI this week so I can't post an update of the ratio. And, I've been busy this weekend and haven't noticed anything of special interest in the latest issue of Barron's, so I have nothing to contribute today. It is interesting that Auger was apparently bitten by the UK-gold-sale bug as well as his latest update only covers the market through Thursday. This next week should be very telling. Cheers, Larry

To: Dan P who wrote (367)	5/9/1999 6:22:00 PM
From: The Barracuda™	Read Replies (1) \| Respond to of 972

I'm convinced that at current prices, the average gold fund will out perform the average gold stock. The funds have tons of underwater warrants that are valueless. If gold shares rise, some of these warrants will go in the money, which will give a positive kick to the mutual funds NAV. Individual gold stocks don't have warrants attached. Also, the funds have a lower risk than individual shares do. It seems to me that for now, gold funds will offer higher returns with lower risk; something that is supposed to be impossible in the financial markets. Do you agree? Robert