PHLX Gold/Silver Sector (XAU)

[long-gone]

To:John Barendrecht who wrote (113)
From: Mark Kubisz Saturday, Jun 21, 1997 12:53 AM
Respond to of 79910

Thanks for the interesting article. I found the following 2 sentences the most important:
ÿ>>From a strict supply-demand perspective, the balance should be
>> bullish for price.
>> ÿFabrication demand for jewelry, coin programs and industrial uses
>> has exceeded mine production for more than a decade.

Why? Because whether one is dealing with a commodity, a stock or an entire market, the fundamentals always win out in the end. The sentiment for gold right now is terribly negative, but because of the fundamentals, I know it is nothing more than that - sentiment. And the sentiment will turn. In the short term though, even within the context of this decline, I expect to see some sharp upward bounces just due to people trading on the technicals. It would not surprise me to see the TSE gold index jump 3 or 4% on one or two days this week.


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