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

To: long-gone who wrote (83988)	3/30/2002 10:45:17 AM
From: Gord Bolton	Read Replies (3) \| Respond to of 116972

Japanese savers hold some 754 Billion dollars in regular savings accounts. Japanese banks lower interest rates to 0.001 per cent. "With the start of the new fiscal year on Monday, the government is withdrawing its unlimited guarantee for time deposits, leaving the banks to find and pay for private deposit insurance for accounts over $75,000 or do without. Deposits over $75,000 in ordinary accounts lose the government's unlimited guarantee a year later, on April 1, 2003." nytimes.com During the last year the POG has appreciated from 32000 yen per ounce to 40000 yen per ounce. That would be a 25% increase over one year. pacific.commerce.ubc.ca Now if you would have had your yen in gold in a 10% margin account! Bonsai But that is not what most Japanese will do. What they will do is buy those shiny little metal bars and take them home. What percentage of that 754 billion dollars do you think will be converted to gold? What effect would say 10% of that cash going to gold over the next year have on the POG? (75,000,000 million ounces or >2350mtonnes) If POG vs YEN continues to climb, how would that affect the rate of conversion? Do you think that they would be buying one at a time? If the Japanese start buying gold big time, what will investors around the world do? How about old shorty, will he cover and go long before the POG hits $350, when it hits $350 or after $350. What would happen to shorty if there was no physical gold available when he was called for delivery?