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Re: geopic post# 13

Saturday, 01/17/2009 12:10:34 PM

Saturday, January 17, 2009 12:10:34 PM

Post# of 34
Why Gold Stocks? They Provide the Biggest Bang for your Buck -

During a gold bull market, I have a strong preference for gold
stocks over either gold bullion or gold coins, largely
because gold shares are leveraged to the price of gold.
In other words, as the price of gold rises, profits of
gold-mining stocks rise more in percentage terms.
Generally, over the longer term, the share prices of
major gold-mining firms rise by a factor of two or
three times more than the price of gold.

The reason gold-mining profits are leveraged to the price
of gold is obvious.

A rising gold price does not lead to a rising cost
of production.

Therefore, for companies that are already profitable,
incremental revenues received from selling gold at a
higher price flow straight to the company's pre-tax
bottom line.

For companies that are unprofitable, a rise in the gold
price can suddenly lift them into profitability and
with that, the share prices can sometimes
rise dramatically -

Gold Spot (FOREX:XAUUSDO) -



Gold LT chart signal bull restart -
5 correction waves done -
with a double bottom -
1 bull wave start past 50dma -

ex..got..gold stock..dd..a few bargains..

http://investorshub.advfn.com/boards/board.aspx?board_id=7050

http://investorshub.advfn.com/boards/board.aspx?board_id=8158

http://investorshub.advfn.com/boards/board.aspx?board_id=2205

http://www.crosslakeminerals.com/i/pdf/QRMineSummary.pdf

http://www.minesite.com/companies/comp_single/company/cross-lake-minerals.html

http://www.investcom.com/moneyshow/gold_cariboo.htm

God Bless