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To: Joan Osland Graffius who wrote (67084)2/13/2001 12:48:33 AM
From: Lucretius  Read Replies (1) | Respond to of 436258
 
LOL... think about that for just a second and you'll figure it out -bg-



To: Joan Osland Graffius who wrote (67084)2/13/2001 1:22:25 AM
From: Mark Adams  Read Replies (1) | Respond to of 436258
 
These questions tie my brain into knots. Maybe I need to move into three or four dimensional graphs to project the possible outcomes <g>.

I think in this case, the price of gold+silver would be the determining factor, as the major asset of the fund is bullion, and the Canadian dollar valuation is moot, IMO. I've struggled with the Canadian dollar on the N (Inco) front though.

My current thinking, without much research into the current financial position of the country, is that Canada will benefit from their vast resource reserves, including XNG, and close proximity to the US. I've heard it said that Canada and Mexico are particularly vulnerable, to the toon of 25%, to a US slowdown.

I suspect in Canada's case, the value of their exports will increase regardless of future US dollar strength or weakness. With a little more research, I might even be willing to put money behind this suspicion. <g>



To: Joan Osland Graffius who wrote (67084)2/13/2001 9:31:40 AM
From: LLCF  Respond to of 436258
 
<Do you have any idea what would happen in this case? >

If gold moves up in $US while the $CD moves down vs the $US then gold rallied even MORE against $CD... hence the shareprice rally in $CD would be even greater than the move in $US... ie. the $CD/$US rate is meaningless... it's $US/GOLD that counts.

dAK