Forum Archive Index - February 2004

["Cristine Kerr" <criskerr@optusnet.com.au>]

Thanks Woody.

 

Re: Gold Price

 

Request for general comment:.

 

1) If this occurs, it would have immediate affect on those invested directly in gold.

 

2) If this occurs, it would have immediate affect on miners or related businesses that are reliant on gold for revenue.

 

3) If this occurs, it should have little or no affect on stocks  that are not primarily reliant on 'gold' as a primary source of revenue.

 

4) If this occurs, it should have little or no affect on stocks whose present market value does not include a weighting factor related to revenue from gold.

 

5) Logically, there should be a correlation between gold price movement and stock price movement for companies whose revenues are primarily reliant on gold, eg; gold up (or down) 10%, stock up (or down) 10%.

 

Also logically, the free trade agreement added value to mineral stocks. I have not witnessed any evidence this has been factored into mineral stocks by the market so could this create a cushion effect during any period of correction?

 

Without pinning anyone down to predictions or definites, what's the general sentiment?

 

Regards,

Cris

 

 

----- Original Message -----

From: Woody

To: Sharechat@sharechat.co.nz

Sent: Friday, February 13, 2004 12:32 AM

Subject: [sharechat] Warning

Be careful of the recent rally in gold stocks, suckers rally: Gold is due for a decline. A pull back to 382.51 or even 371.70

is a high probability.

Woody