To: ahhaha who wrote (34362 ) 5/23/1999 6:14:00 PM From: Rarebird Read Replies (1) | Respond to
I see the bottom of Gold as being here at the $250 to $270 range. How much lower can it go if gold mining companies produce gold at a cost of $180-$240 per ounce? These companies will decrease their production if the POG falls further. As a contrarian, this is the perfect time, I think to begin accumulating the yellow metal. I feel that everyone who is weak in their gold investment has sold out...only die hard gold bugs, recent investors remain, and Y2K Bears are invested- none of whom are likely to sell. Yet, as long as the equity markets return 20%-30% per year, what the heck, right? But remember, since the US equity market and economy has long since been the world's dominant and sophisticated one, it has been the last to go. The Lesser Developed Countries have crumbled and only seem to have rebounded because they are heavily dependent upon oil exports and the price of oil has rebounded dramatically. Other than for oil, their economy cannot hold its ground and once OPEC stops its market manipulation or a country breaks loose from the production cuts, oil will fall. However, I personally feel that Y2K is the greatest problem, not that the world will tumble on Jan 1; but since Asia and Europe are terribly unprepared, that will lead to lawsuits and recessions there that will hit home in the US.
