augieboo's depository of gold

[augieboo]

ZEEV ON GOLD & GOLD STOCKS:

Sylvestor80 said:

The question then is, would you buy a stock now that has gone up 400% when the underlying reason for that 400% increase has only gone up 18%? Sounds like a bubble to me... lol http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=17754322

And Zeev responded:

Syl, here you are making a big mistake, the earnings of gold companies with cash cost in the $270/ounce were negative or close to nil six months ago, and the price of the shares reflected the poor outlook, but at $300, some of these companies' earning could go up by a factor of 5 or 10, and thus the 400% price rise in the shares reflects the new reality accurately. The real question is whether gold will hold above $297, if it does, another attack on the $330/40 area will follow, and if the dollar continues its plunge, i think that higher gold prices will follow as well.
Zeev
http://www.siliconinvestor.com/stocktalk/msg_multireplies.gsp?msgid=17754322