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Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (13770)	9/25/2000 11:17:57 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 14627

Claude, Yes indeed, the industrial reclamation of scrap is in decline. The biggest users of industrial gols used to be mainframes and the military. When gold went to near $1000 they started a dedicated campaign to minimise gold used in various computer areas. The military stuck to their thick plated specs. Now gold has been minimised in mainframes and all the old one with thick gold are pretty much scrapped now. Gone are the days of $40 per pound boards. The military stance of the nation has declined. fewer troops, fewer planes etc, so the military industrial use of gold has declined. It will not go to zero though. The Russians had 5-10 times the gold plate in their stuff as they had no economic way to limit costs. Their military had the ability to demand gold for their weapons and they got it. In recent years large amounts of russian scrap has emergen as a major factor. This has declined enormously and can now be discounted as a large sourve. Jewellery is still growing and as Asian is now in full recovery mode they are buying a lot more gold as a store of wealth. India still salts away lots of gold and silver. I have to say that we will get into a shortage position sometime in the future. It all depends on when they stop the sale of national bullion stores. If they get rid of them totally then gold will stay flat for 10-20 years. If they stop sales of bullion tomorrow then gold will start to rise. The Europeans need to sell their bullion to prop up their badly over socialised economies and stop the Euro from totally going into the tank. greenspan helped, but a true fix is needed, not a palliative that will permit the Europeans to paper over their problems with US$. After the election in the new Admin look for a decline in Euro support from the USA. There is a degree of linkage. Holding up the Euro stops Euro stuff from getting really cheap here and killing some domestic industries. It also allows US exporters, like Intel, AMD etc to sell into Europe without such a high US$ trimming sales. Bill