GOLD SHARES

Otago Daily Times, Issue 22260, 12 May 1934, Page 3

GOLD SHARES

ABNORMAL BOOM IN SYDNEY (From OtJi: Own Correspondent.) SYDNEY, May B. The intense buying of gold stocks over a period of some weeks culminated iu 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 iu Sydney on Wednesday 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 hands. 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 for the precious metal. On Tuesday the trading was worth £40,000, and that figure was exceeded on Wednesday. It is notable that prices of the shares most in demand have lacked spectacular rises that might have been exacted in

such circumstances. Nevertheless, th* general trend of the market has been higher. In some instances . there havs been gains of 2s, and some bif 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 10d shares each, and this has accounted largely for the long time occupied in effecting the business. Trading that normally occupied two hours and a-half has exended to five hours. Buying and selling have been fairly evenly balanced. In addition to the business on ’Change thousands of pounds of capital has been subscribed for new flotation®. 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 in>* dnstrial concerns. It appears likely that several companies that have not paid a dividend for some time now will do so this year, and there has been substantial inquiry for shares in these undertakings. The search for fixed income stocks ha* b>cn the dominating feature of the sh»» market for the last fortnight.