Forum Archive Index - February 2003

["mvanv" <mvanv@xtra.co.nz>]

 

Good to see some well informed debate on gold

 

Usually in the early stages (first phase) of a bull market in gold,the mining Co. shares                                                          outpreform the bullion. Currently the mining  Co. shares are not keeping pace with

bullion .    This  could be because, so far  this bull market has been driven by asians

and arabs buying bullion. They are not interested in owning shares in mining Co,s

 

Joe Public is still fully invested in traditional shares (western counties) while asians

and arabs are busy buying gold bullion. As yet there has been little demand for

mining shares.

 

The total capitalisation of all gold mining  Co,s is vry small.

America's largest traditional company has a market  Cap. geater than the market

cap. of the entire gold mining industry.

 

When Joe Public finnally gives up on his traditional stocks and shares and sells up he

will be looking for something else to invest in  (no time soon)

There will not be enough gold mining shares to go round--prices will rise

Currently we are still in the first phase of the bull market.

 

first phase           (smart money/sharechatters)

second phase       (institutions)

third phase          (Joe Public)

 

 

When Joe Public gets in the market it,s time to get out.

We are years away from that happenning.

 

 

 

  Mike