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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (53401)	5/30/2000 8:07:00 PM
From: lorne	Read Replies (1) \| Respond to of 116770

Right on E. " But, put it this way, if a Canadian producer extracts gold with a $Can at parity to the US$ and is only marginally profitable - won't he become immensely more profitable if the $Can falls to 68 cents US? That is in fact what has happened not only in Canada, but it S.A., and Australia too. " Lets say for the heck of it that the US$ tanks would the Can.$, Aus.$, SA. Rand gain in value against the US$ ? And if so what happens to the POG in terms of Can$, Aus$ SA. rand. A person might think that these countries have a stake in keeping the POG where it is. Also Seems to me that these countries are big gold sellers and quite often sell into any rallies ? Lorne

To: Enigma who wrote (53401)	5/31/2000 12:35:00 PM
From: Zardoz	Read Replies (2) \| Respond to of 116770

but surely if gold is denominated in US$, and the $US falls gold will rise - other things being equal. As you said, "Ah, yes, you'll say, but other things aren't equal". It is possible for a currency to go down relative to a group of 6 others currencies {AKA the US Dollar drops} But up against a larger 150 baskets of currencies. As people say: Gold is the ultimate store of value. Then as such: Gold has no growth. And since it has no growth other currencies can appreciate and depreciate in relation to gold based on inflation, rates, GDP etc. What you've witness in the last year is a US Dollar index climb. This is the US dollar against a basket of currencies, BUT this does not mean that the same basket of currencies hasn't appreciated against other currencies; like the Rand. Hutch