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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.
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To: gilles vaillancourt who wrote (7336)3/18/1997 10:50:00 AM
From: Goldberry   of 28369
 
One must keep in mind most of the gold producers sell forward and not just the next few months. I haven't looked at the numbers recently but when I last looked one year forward was about 10% higher than spot and 2 years about 15%. You can also be sure the major gold companies are expert at trading in these futures and will buy them back when conditions are right. This in itself would tend to push the price of Gold higher.

IMO gold pricing is a function of the U.S. dollar in relation to the other major currencies of the world and will continue to be so. I do not expect gold to rise substantially until the greenback weakens against the other majors. I believe we must be getting close to a high for the dollar because unless they use protective tarrifs Japan and Europe will soon be flooding the U.S. with goods. The U.S is unlikely to sit still when people start buying more offshore manufactured goods than internal.

Graham
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