SPECULATION IN GOLD SHARES

Nelson Evening Mail, Volume LXIX, 29 January 1936, Page 7

SPECULATION IN GOLD SHARES

PUBLIC INTEREST DECLINING k The notable decline in public interest in tire more speculative type of gold mining shares was mentioned by Mill. Kitson, chairman of the Christchurch Stock Exchange, in his address at the annual meeting of the exchange (reports the “Press”). “The figures for- the year of the number of sales on reported disclosed a decline of approximately 1,000,COO shares,” said Mr Kitson. “Practically the whole of the drop is accounted for by the gradual dying of wild speculation in gold mining shares. I am sure members will not regret the fact. There are still quite a few gold mining companies whose shareholders can only look forward to liquidation as a means of recovering any part of their capital. Sales in gold mining shares for the first quarter were 313,815, second 234,640, third 225,000, and fourth 114,173 —a total of 887,628, against 1,900,000 in the previous twelve months. “Some gold mining companies are standing up to the test of time and are, and probably will be for some years, paying dividends to their shareholders. The price of gold has fluctuated from time to time within narrow margins. So far no commodity has been found to take the place of gold as a measure of value, and it is not at all improbable that we shall see before very long the various countries of the world once more on. the gold standard. It does not appear to-day that prices will rise and maintain their rise at such a level as to bring down the price of gold to the old stability minimum.

“Many hold the view that before stabilisation can be effected a new fixed price of gold must be determined. If this does occur the value fixed must be very close to £7 an ounce sterling.”