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Re: gold56 post# 35975

Friday, 11/05/2010 4:23:28 PM

Friday, November 05, 2010 4:23:28 PM

Post# of 173237
"Gold soaring and we're dropping, makes no sense at all!!"

When I tried to make an association between the PPS and POG, no matter how how weakly I intended that, I was attacked here for suggesting that that was at all possible. No matter. In regards to the weakening share price, one has to expect that when anticipated news does not arrive, the share price will fall.

Among other adages in the mining business, there are two that apply here. One says, "No news is bad news", and another that advises, "Good news travels by rocket, bad news takes the train."

What they mean is, the longer it takes to get the good news the market anticipates, the more it perceives a risk of things going wrong. This causes selling and lower price, though it does not mean that the sellers are correct in expressing their fears this way.

Hope this helps.

VP in AZ
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