WARNING: This is Version 1 of my old archive, so Photos will NOT work and many links will NOT work. But you can find articles by searching on the Titles. There is a lot of information in this archive. Use the SEARCH BAR at the top right. Prior to December 2012; I was a pro-Christian type of Conservative. I was unaware of the mass of Jewish lies in history, especially the lies regarding WW2 and Hitler. So in here you will find pro-Jewish and pro-Israel material. I was definitely WRONG about the Boeremag and Janusz Walus. They were for real.
Original Post Date: 2003-11-27 Posted By: Jan
From the News Archives of: WWW.AfricanCrisis.Org
Date & Time Posted: 11/27/2003 6:08:31 AM
Gold jumps over $400 temporarily
VANCOUVER, British Columbia (Reuters) – Bullion’s brief stab above $400 an ounce on Wednesday injected new life into gold stocks across North America, and analysts said if history repeated itself there could be more gains to come although some issues were looking pricey.
In New York and Toronto, gold indexes surged to new life highs as a weaker U.S. dollar and a security scare on New York’s subway system sent gold for February delivery spiking up to $402 an ounce.
But even as gold pedaled back from its 7-1/2 year high, after police said the subway incident was not terrorism related, shares in gold producers remained firm.
For a change, even those producers with hedge books heavy with gold sold forward at pre-set prices, were having a strong day as investors’ attention, caught by high metal prices, shifted from firms’ balance sheets to their growth prospects.
Among the biggest hedgers, Placer Dome Inc. (Toronto:PDG.TO – news) jumped 4 percent, or 88 Canadian cents, to close at C$23.05 and Barrick Gold Corp. (Toronto:ABX.TO – news) rose 3.5 percent, or 99 Canadian cents, to C$29.15.
HISTORY ON GOLD’S SIDE?
David Stein, an analyst at Sprott Securities in Toronto said a recent analysis showed that, during the last gold rally between 1993 and 1996, gold stocks had a weighting of, on average, about 11 percent in the broader Toronto Stock Exchange composite index.
This weighting had fallen as low as 2 percent in 2000, when bullion plumbed levels below $300 an ounce. It is now about 7 percent to 8 percent of the broader market.
“One historical marker suggests that there is some upside in gold stocks if gold is maintained at these levels,” Stein said.
The Toronto S&P/TSX gold index (^SPTTGD – news) reached its highest level since the index was started, touching 237.12. It ended up 4.3 percent at 235.62. Bullion was bid at $396.25 an ounce.
In New York, the HUI gold bugs index (^HUI – news), a barometer tracking unhedged gold stocks, set a record peak of 244.57. It ended just south at 242.58, up 4 percent.
In a research report last week, Canada’s National Bank said that since 1968, gold cycles have typically run for three years with only one cycle stretching to a fourth year.
“Given our current outlook for real rates and the U.S. dollar, as well as strong commodity fundamentals, we are optimistic that the current gold cycle can be extended into a fourth year (2004),” the report said.
Historically, gold has shown strength at times when the U.S. dollar is weak and real interest rates low. A weak greenback makes it cheaper for buyers using other currencies to purchase the metal, which is priced in U.S. dollars.
Mid-sized and small gold producers, as is customary, were enjoying the biggest gains — highlighting their greater leverage to the gold price. Junior Queenstake Resources Ltd. (Toronto:QRL.TO – news) jumped 8 Canadian cents or nearly 10 percent to 90 Canadian cents, while bigger peer Golden Star Resources Ltd. (Toronto:GSC.TO – news) put on 7.5 percent, or 66 Canadian cents, to C$9.46.
Outspoken anti-hedge critic Goldcorp Inc. (Toronto:G.TO – news) gained 2.9 percent to C$22.90. At least one analyst said the stock was expensive.
In a note to clients, Michael Jalonen of Merrill Lynch said Goldcorp was trading at a price that was more than 3.5 times its net asset value.
“This is well above the historical range of 1 to 3 times for North American gold shares,” Jalonen said. He has a “neutral” rating on the stock.
Source: YahooNews.com
URL: http://news.yahoo.com/news?tmpl=story2&cid=56…br>