Forum Archive Index - November 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

>>
>>>Got to $ 400 today ( not that it was ever in doubt )  several of
>>>my Aussie golds up 5%  today, a good days work.
>>
>>And the kiwi dollar rose to new highs in tandem, wiping out all the
>>gains in gold.
>
>as I own aussie gold stocks, I am only concerned with the A$/ NZ$
>cross, I think you are missing the point Snoopy you should never let
>you ego get in the way when it comes to making $$$$, 
>

So why mention that gold got to $400 US then?    It seems to be 
irrelevant to your argument for buying Aussie gold shares.

And previous to that you wrote.

>
>I own a gold ring and several aussie golds, when we get to $450 and
>gold stocks have moved another 50% I will discuss the fundamentals 
>that you should be looking for
>

I think you have me wrong on this gold thing.   I will happily invest in 
any Austalian gold company that you can make a good case for.

By 'making a case' I want to know about the reserves, the cost per 
ounce of extracting those reserves, the forward sales contracts the 
hedging position etc etc.    This is what I mean when *I* talk about the 
fundamentals of gold.

However, when people like you and Lazyhaggis talk about the 
fundamentals of gold, you point to a rising price (in USD terms, yet the 
price is falling in AUD terms), news articles pointing to instability in 
Iraq, talk of depression in the US etc etc.    Not the slightest mention of 
cash flows, projected profits, or anything else remotely connected to 
real fundamental analysis.    I don't really wish to spend my time 
knocking you gold bugs.   I just want you to come up with a much more 
substantial case for investing in Aussie gold shares than you have, 
based on future earnings and cash flows.

To answer my own opening question, I do know why you keep crowing 
about the price of gold, the metal.   You do it to drum up interest in 
gold shares because you realise that what you are doing is really a 
giant game of 'pass the parcel'.   As long as there are enough new 
people getting into the market then the demand for gold shares will go 
up and so will the value of your current holdings.   You actually don't 
care about the real value of gold.  You are content to ride the 
momentum, safe in the knowledge that when the music stops you will 
get out (you hope).

IMO this is a dangerous game to be playing.    Perhaps you are right 
and the real fundamentals of these Aussie gold companies you invest 
in are genuinely good.    But no information on this forum you have 
presented so far leads me to believe that either you or Lazyhaggis 
have any knowledge of the fundamentals of gold.    Of course, as 
always I invite you to prove me wrong.

SNOOPY

--
Message sent by Snoopy 
on Pegasus Mail version 4.02
----------------------------------
"Dogs have big tongues, so you can bet they don't 
bite them by accident"


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