Gold Mining Stocks and the Current Sell Off in the Metals
Kenneth J. Gerbino - May 16, 2006
........1) Using a base of approx. $400 gold for all of 2004, one could expect a 33% retrenchment of the move to $700. 33% of this $300 move would be $100. So a target here would be $600 gold.
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2) Using the shorter term base of 2006 (Jan-March of approx $570) then the move to $700 would be $130 and using a short term 50% retrenchment (due to the short term nature ) would be $65 or a target of $635. These numbers work for traders as well as jewelry buyers in Asia and India. So a $600-635 price target may be reasonable.
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The major move in gold will occur years from now when inflation is everywhere and at very high levels (8-12%) and people from China, France, the U.S. and other countries are stampeding into gold. The last few years are only the first leg of gold catching up with toothpaste, donuts and coffee. The big move is coming later.
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Major mining companies are in acquisition mode and this is a long term bullish sign as these players are extremely conservative and rarely speculate (as opposed to small exploration companies) ABX taking over PDG. Teck-Cominco merger and now Teck-Cominco going after Inco. There are others. They know the supply-demand equation for the metals is long term very favorable.........
http://www.321gold.com/editorials/g...bino051606.html
....die sollen nur fleissig in "acquisition mode" bleiben
linar