Here are some points you must consider:
1] An interest rate cut will decrease the value of the $US against most
major currencies. Japan is an obvious choice but after this weekend's
trouble with banking reform legislation (a bulletin you have received),
you may want to look at the German Mark, the Canadian Dollar and the
British Pound.
2] Any drop in the value of the $US will be a positive to precious
metals, especially <underline>gold bullion</underline> and large gold
producing companies. In the US, companies such as <underline>Barrick
Gold, Placer Dome and Kinross</underline>. In Canada, those same names
can be looked at in addition to smaller-cap names such as
<underline>Arizona Star, Bema Gold and Iamgold.
</underline>___________________________________________________________________
On the currency front, we are pleased to report that all major currencies
are up strongly against the US dollar. We are also pleased to report the
Japanese Yen, as stated in our report, is actually down. As such,
currency traders have much to be happy about over the last 36 hours.
Secondly, we are especially pleased to report that gold bullion reached a
high of $299.50 on the October Comex. Silver has also staged a nice
rally over the last 36 hours. With respect to specific gold companies we
mentioned, we are also pleased to announce the following increases since
our bulletin:
Barrick Gold +$3.40 11.8%
Placer Dome +$2.30 11.4%
Iamgold +$1.15 27.0%
Kinross Gold +$0.96 24.0%
Bema Gold +$0.46 25.0%
Arizona Star +$0.27 20.0%
We are especially pleased with our performance Iamgold, the top performer
in the group, which is also an important component of the AGORA
portfolio.
OUR COMMENTS
Fundamentals for gold and precious metals continue to look strong as
fears of a global banking crisis spread. The $100 Billion bail out we
reported yesterday has investors worried that further collapses among
hedge funds may be possible. Continued guessing that interest rates will
be cut by the Federal Reserve Board on Tuesday will continue to weaken
the $US and continue to strengthen the demand for gold, which is priced
in $US.
Having said that, we are definitely going to take some profits out of our
gold trading positions in the AGORA portfolio. Though we feel confident
in the outlook for gold, the last 36 hours has seen a quick move in the
price of gold. Typically, this is an knee jerk over reaction and we can
expect some pull back in currency and precious metals markets. Thus,
would feel more comfortable in capitalizing on some of these profits.
Have a great day.
Regards,
Agora.
The Investor's Investor. Published by Agora International Enterprises Corp.
© COPYRIGHT 1997-1998 by Agora International Enterprises Corp. ALL RIGHTS RESERVED
Information presented by The Investors Investor is not an offer to buy or sell securities referred to herein. It is strictly for information or entertainment purposes, highly opinionated and not in any way guaranteed as to accuracy or completeness. Readers are urged to obtain complete financial and other information directly from their investment advisor or the company. We are not liable for any investment decision. We are not an investment advisor, analyst, market maker, geologist, mining expert, money manager, stockbroker, etc. Stocks mentioned tend
to be extremely speculative, volatile, high-risk and unsuitable for all but the most aggressive investors willing to lose all of their investment.
DISCLOSURE STATEMENT
AGORA INTERNET RELATIONS CORP. receives a monthly monetary fee from Mirandor Explorations Inc., Sideware Systems Inc., King Communications International and Valu-net Corporation for the purposes of communicating with Internet shareholders - both current and prospective - to increase awareness of and interest in these companies AGORA INTERNET RELATIONS CORP activities are aimed purely at keeping their clients' shareholders and prospective shareholders informed about their company. These activities consist of providing investors with previously disclosed factual information concerning the company, comments from company principals, copies of material that has been filed with regulatory authorities, comments prepared by registered brokers or investment dealers and material published in newspapers, magazines or journals.
AGORA INTERNET RELATIONS CORP does not participate in the maintenance of an orderly market in their client's securities, nor is required, or receives an incentive for, the maintenance or achievement of a price or trading volume for their client's securities at a certain level, for a specified period of time or by a certain date. AGORA INTERNET RELATIONS CORP. may, at any time, own shares in these companies.
|
