Gold shares
Sir: I note your correspondent in the issue of February 9 says he does not favour gold shares, which prompted me to look at his reasons, for local opinion has it they are a gift from Heaven in spite of a premium of 30 per cent or so.
Taking his reasons in order, first, "domination by the Americans" would, on the contrary, be, I'd have supposed, a bull-point as the American dollar is rapidly depreciating.
Secondly, down-grading of ore may upset personal calculations but surely that doesn't affect the profitability of the mine. '
Third, objection of escalating costs is surely met by the price of the product increasing all the time, and gold is in this respect unique, for its supply cannot keep up with demand which is of a world-wide order, resulting in a constantly rising market, and so able automatically to look after its increased costs.
It may be that woolly thinking about gold is coloured by personal political views which override economic facts. R. Y. Armstrong Hermitage PBV 7400, Umtali, Rhodesia.
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