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Gold/Mining/Energy : Gold Price Monitor

GDXJ 94.04

+0.6%

Nov 21 4:00 PM EST

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To: John Lacelle who wrote (14145)	7/6/1998 7:20:00 PM
From: goldsnow	Read Replies (1) of 116764

>>>What makes you (or anyone) believe that gold is still a good hedge? Last year, many countries actually sold off a good portion of their gold. >>> John, this is a very complicated topic...This thread devoted many, many posts to this..Allow me a fairly brief answer.. Gold was sold by some countries in Europe (notably Belgium and probably by Dutch to qulify for EMU membership (stringent budget guidlines) Australia sold its gold for not well understood reasons and that single event combined with Bre-X started a collapse in POG/mining industry. Result: A $ hit rock bottom against both Dollar and Gold with severe consequences to Australian Economy (partially due to Asian crisis, but undoubtedly exacerbated by Gold sale) Now the biggest reserves in the World are in US Dollars not gold-what would happen to those CB's and respective countries when either Dollar value would drop/collapse or simply Dollar goes for sale (just like Gold -and believe me many countries like Japan/China have a lot of reason to sell US Dollar....Either for commodities or just food.. If/When Dollar goes down..What would bring Dollar down... How about Yen over 170-200 with China devaluing yuan, trade deficit engulfing USA in a disastrous protection... How about tensions on USA street between peoples ala Bosnia when/if unemployment explodes...Paper (any paper) would help you?... And that for starters many more mandane reasons to look at the commodity with great supply/demand fundamentals that are getting better with each month that another project (exploration/mining is shelved...

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