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Hi All,
I believe the average cost of production of gold is slightly below $200 per
oz. This means that the less efficient producers would stop production at
or near this level, particularly since technology can't help increase
efficiency. This reduction in supply should stabilize price and gold may
begin to trade in a relatively tight range.
Before buying any gold stock, I would want to know their cost of production
and if it is above $200 per oz. avoid it like the plague, since they will be
the first to stop production.
Good luck and good trading,
Ray Raffurty
----- Original Message -----
From: Alexander Levitin <alevitin@xxxxxxxx>
To: Doug Penny <pennyd@xxxxxxxxxxxxxxxxx>; Realtraders
<realtraders@xxxxxxxxxxxx>
Sent: Thursday, July 22, 1999 10:16 AM
Subject: Re: Gold is the garbage, gold stocks are not worth the paper ...
> Dear Doug:
>
> Thanks for the interesting chart. If gold goes down $200 that looks not
> only as interesting support, but the leg down will be the same length as
> the previous one from $400 to $300. But to make that leg down requiters
> real deflation (and suffering). We will know more by October 1999.
>
> Please, let my know what is the technical tools chart book? I would love
to
> find electronic chart book. Never heard about one.
>
> Yours, Alex.
>
> At 02:34 PM 7/22/99 +0100, Doug Penny wrote:
> >For what it is worth, some years ago when I followed Prechter he had a
> >long term
> >bottom Elliot count in gold of $179.
> >Don't know if he ever gave up on this but it is looking better every
> >day. The
> >long term chart from 1976 also shows gold finds support and resistance
> >at the
> >$100 levels with the next at $200. I also find open interest interesting
> >on the
> >attached chart
> >
> >Doug
>
>
>
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