sorgmot

Bullish on All Metals

Business cycle years in which USA dollar interest rates are falling have been supportive of gold price upswings as well as increases in gold mining stocks and also mutual funds such as the Fidelity Select Gold Funs which holds gold mining stocks. For example, in the 2001 through 2003 period, gold rose from $280.00 to $400.00 per ounce and in the same period the Fidelity Select Good Fund shares rose from $10.00 to $31.00 each by the end of 2003.

Who knows what will happen as the Fed cuts rates starting in late 2007. History could repeat.

To check this data, you can go to financialtrax.googlepa...
and click on Commodities and then click on the Moore site click and then look at short term interest rate history and then look at gold prices.

Gold mining stocks per cent change amplify the gold bullion because in the short their costs per unit of gold extracted stays constant while the whole increase in the revenue from the unit of gold sold passes through to profits.