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The value of a gold mine is shown to be a function of the return on gold, production costs, the level of gold reserves, and the proportion of assets unrelated to gold price risk. Assuming that forward gold prices are the market's unbiased expectations of future spot prices, a model is derived that estimates the theoretical gold price elasticity of gold mining stock. The model shows that if a company's primary business is gold mining, the gold price elasticity of the company's stock is greater than one. Using monthly data over the ten year period 1981 through 1990, the model is tested for a sample of 23 publicly traded gold mining companies. Direct all correspondence to: Laurence E. Blose, University of North Carolina, Deparbnent of Finance and Business Law, Charlotte, NC 28213. Copyright 0 1995 by JAI Press, Inc. 1058-3300 125 Notes: 1. Model Ri = ~0 + ~1 RG. Significant at a level of .05 (one sided test). (one sided test). The number in parentheses is the f-statistic for the hypothesis that the coefficient is equal to zero. 2. Significant at a level of .Ol 4.The White (1980) test rejected the hypothesis of homoscedasticity; therefore, f statistics were calculated using the estimated asymptotic covariance matrix under the hypothesis of heteroscedasticity. For details see the ACOV option in the Proc Reg statement of SAS.

There is a significant positive relation between 'lbbin's q-ratio and the magnitude of stock market reaction to capital investment announcements. The findings have the following implications for capital investment theory: (i) The results provide evidence substantiating the link between the q-ratio and real investment for industrial fms. For public utilities however, no such link exists. (ii) The study finds that average q and marginal q are correlated but the relation is somewhat more complicated than simple equality as assumed by numerous empirical studies. (iii) The findings suggest that investors can use average Tobin's q-ratio to identify companies with profitable real capital investment opportunities.

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This study examines the weekend effect in gold returns during bull and bear markets over the period 1975 through 2011. It shows that gold returns from close on Friday to close on Monday are significantly lower than returns during the rest of the week. This result is due largely to gold returns during bear markets. During gold bull markets, gold weekend returns are not significantly different from weekday returns. The study shows that the effect has substantial economic implications for gold investors. The effect is shown to be related to a significantly negative skewness in the weekend returns.