Gold's swift rally may spark scramble

CBS Market Watch ^ | Feb. 6, 2002 | Thom Calandra

[Cuttnhorse]

SAN FRANCISCO (CBS.MW) - Now comes the hard part in the $300-plus gold rally: finding the neglected mining stocks.

Problem is, there aren't many. The entire category of gold mining stocks, from the Newmont Mining giants to the Vancouver-listed juniors, doesn't exceed $50 billion of market capitalization. "Up until three weeks ago the entire market cap of the book was smaller than McDonalds," said John Hathaway, whose $30 million Tocqueville Gold Fund is up 29 percent since Jan. 2.

Of the largest gold companies, Hathaway sees Barrick Gold (ABX: news, chart, profile), digesting its 2001 purchase of Homestake Mining, as a laggard. In the past two months Barrick shares have gained about 20 percent vs. a 26 percent gain for the 11-member Philadelphia Gold and Silver index, known as the XAU.

[Cuttnhorse]

A certain sign of jitters over the traditional Blue Chip companies.

[Revelation 911]

whew - I glanced at the title and thought it said "God's swift rally may spark scramble"

Ha !

[Cuttnhorse]

Geez, you made me go back and read it again!!!

[headsonpikes]

If you want to follow the gold market, try www.gold-eagle.com ... and it's got good links. ;^)

[Cuttnhorse]

Thanks for the link...I work for a large Canadian-based gold mining company. I'm hoping the Canadian juniors start raising money for exploration again...it's been a long drought.

[headsonpikes]

I work for a junior Canadian gold-mining company; we're raising money right now. ;^)

We're full of hope, again! LOL!

[Cuttnhorse]

Good for you and best of luck, I did a LOT of consulting in Nevada for juniors...most do a great job and are an integral part of the mining business.
Regards from Chile

[morque2001]

I highly recommend this site The Daily Reckoning for all of those who are interested in the markets, specially Gold, and Gold stocks. Very informative, and updated daily. I guarantee yuo will like it.

[Cuttnhorse]

Thanks Morq

[headsonpikes]

Looks like an interesting site. There are some sharp cookies at the 'Gold Forum' at the Gold-Eagle site, also.

[GregoryFul]

And a lot of these gold mining companies have already sold their future production -- so investors are buying a sack of ...

[Cuttnhorse]

"And a lot of these gold mining companies have already sold their future production -- so investors are buying a sack of ..."
Then the companies will fail and unwise investors will suffer for not doing their homework.

[Semaphore Heathcliffe]

I'm breaking my self-imposed exile from FR just to second your recommendation for reading the forum at Gold-Eagle. Fabulous place. The perfect mix of gloomy (read: realistic) socio-political outlook and sound Au investment info. What more could you ask for!

fading back into exile, two weeks on the road away from a computer...)

[headsonpikes]

"...fading back into exile..." lol! Achilles in his tent!

Yes; Gold-Eagle has some good posters amidst the loonie Drooy touts! lol