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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (5546)	2/10/2002 12:35:38 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 33421

there is a difference between gold and the gold mining industry. Indeed.. Although I've never been known as a gold bug (and I still am not), there is FINALLY something to be said for gold, if only due to the fear in Japan, as well as miner's decisions to reduce hedging. But this is a commitment which may fall under pressure by those companies seeking to capitalize on the windfall they are currently seeing, should they seek to improve their capital positions and acquire other gold miners. (if you don't hedge, you're at a financial disadvantage to those companies that do). But I will say that with $12 Trillion in cash to potentially deploy into gold, the Japanese could prove to be a major force in the metals markets. It all depends on how Tokyo and the BOJ manage this devaluation in order to prevent panic selling of Yen. Btw, the month chart of the XAU is looking mighty powerful, supporting the belief that their is a major bull market in gold companies unway that could carry forward for several years. But what that means for the POG itself is unknown. Hawk

To: Henry Volquardsen who wrote (5546)	2/10/2002 2:12:00 PM
From: Joan Osland Graffius	Read Replies (2) \| Respond to of 33421

Henry, >.It is a zero interest bearing commodity, for all but professionals who have access to the lease market. If you are an ordinary person living in a country where the currency is being devalued relative to the US$, gold will keep its value relative to the currency of the country one lives in. Countries that come to mind are Australia and Canada when their currencies started devaluing against the US$. People who understand the financial systems can find other mechanisms for investments to take care of currency risk, but do not see education of the masses on how to protect the value of their capital assets. IMO, the common ordinary person has sufficient information to know that gold is an instrument that will solve the problem. Joan