GOLD SHARES

Evening Post, Volume CXVII, Issue 109, 10 May 1934, Page 5

GOLD SHARES

ABNORMAL BOOM

(From "The Post's" Representative.) SYDNEY, May 5. The intense buying of gold stocks over a period of some weeks culminated .in Sydney on Tuesday and Wednesday with, the ./liveliest, trading,-in mining ventures in the history of the Sydney Exchange. So great was the volume of buying and selling in Sydney on that ordinary business in investment 'shares was completely disorganised. Call times, were changed. Considerable excitement prevailed,, for the market for the mining shares was very erratic. It is estimated that since Easter nearly £1,000,000 worth of gold stocks have changed"-hand's! It would seem that gold has gripped the public imagination, and that the continued heavy buying ,is eloquent both of the speculator's -and the investor's faith in the .outlook ;'f or' the precious metal. On .Tuesday the trading : was worth £40,000, and tihat figure was exceeded on Wednesday.'" . '■•,..

• It'is notable^that piiecs 'of the shares most in demaml have" lacked spectacular rises,- that;' might have .been expected in such, circumstances.'-. Nevertheless, the general trend of the markethas been higher. In some instances there have been gains of 2s, and. some big profits have been made on paper. These have mostly been • used for further speculation,- thus- making for sustained buoyancy; Most of the '.deals have .been-.for; 100 shares each, and this ■has''accdiinted largely for the long time occupied in effecting the business. Trading that normally occupied two and a half hours has extended to five houss. - Buying and selling have been fairly evenly balanced. 8 ; In addition.' to .the business ,on 'Change thousands of pounds of capital haye been, subscribed for new flotations. A .brisk volume of investment business has accompanied the demand for' gold shares. Loans, have been firmer, and there : has been -a strong demand for shares in industrial • concerns. It appears likely that several companies that haye not paid a dividend for some time now will do so this year, and there has been substantial Tnquirv for shares in these undertakings. The search for fixed income stocks has been the dominating'feature of the'share market for the last fortnight. ' :-' ■-.