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The approaching holiday season for several cultures is cited for its strength as gold jewelry is considered the most popular gift...

I need some shinny new gold bricks to hold down my Christmas tree stand. Its a cultural thing...the 99.99% silver tinsel makes the branches look funny, I'll need some platinum and palladium to reinforce them.

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This was too good not to post........You cant make this up.....

 

09:19 ET Oil, Gold, Dollar Summary : Gold is following through on yesterday's run up as it trades up 4.80 near $385.55 this morning. The approaching holiday season for several cultures is cited for its strength as gold jewelry is considered the most popular gift

 

From Briefing...

funny, I heard the same thing last year. Looks like J6 will have to refi-oops, can't do it, rates are up. Looks like J6 will have to hit the ccard-oops, can't do it, maxed out. How will J6 pay for these gold Xmas presents? SELL OVERVAULED P.O.S. STOCK!!

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Briefly, if you play enough at Whattahose, you become a "Premier" whatchamagooch. They give you a certain broker who offers you ticket to innocuous event etc. et. al. but, in a case like this morning for me. I call him and he can grease things so that I can sell my long and sell short simultaneously (when the upticks are there) even if my account can not hold both. I don't have to wait for one before I can start doing the other. It' a nice situation.

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ASA Closed-end Gold Fund

 

All figures are from Q2 2003.

 

 

It should be noted that the fund still has an 8% discount to its holdings.

 

 

South African Mines

 

Gold Fields 33.2%

 

Anglogold 19.3%

 

Harmony 8.2%

 

Anglo American Platinum 7.9%

 

Anglo American 5.7%

 

Impala Platinum 4.6%

 

Canadian Mines

 

Barrick Gold 3.7%

 

Placer Dome 3.3%

 

United States Mines

 

Newmont Mining 4.4%

 

Australian Mines

 

New Crest Mining 4.2%

 

South America Mines

 

Buenaventura 3.8%

 

All dividends are reinvested.

post-3-1066829664_thumb.gif

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So this morning the Mutual Fund Network is discussing Merck's earnings miss, and that company now sees full year earnings at $2.95.

Faber points out that since 2000, Merck's earnings are flat at about $3.00 per share for each year.

 

Here's the good part.

Then in a disgusted voice, he says, "what kind of a multiple do you pay for that?!?".

 

Merck closed yesterday at a little more than 16 times earnings with a 3% dividend.

 

Funny, Mr. Faber I NEVER HEAR YOU ASK THAT QUESTION ABOUT ABOUT A NON DIVIDEND PAYING TECH STOCK TRADING AT 60 TIMES PRO FORMA EARNINGS.

I don't know whether Merck is worth a long here but the fact is that, prior to 1980, the bulk of returns from stocks came from dividends. The rapid decline in interest rates and inflation since that time raised the value of financial assets and created a capital gains orgy. Favorable tax policy has kept the game going even though the prime drivers of rates and inflation are not doing their part any longer.

It's ironic that investors are paying big numbers for earnings without dividends at a time when earnings quality is at its lowest.

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