Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (2338)	4/4/2002 9:23:38 AM
From: nickel61	Respond to of 3558

And I don't differ. You are right. I just think that the US economy is more vulnerable to needing to keep its ocean of paper currency afloat then you do. The unfortunate outcome of this is that the dramatic increase in the amount of US currency printed can have a very leveraged impact on the value of real assets gold included. You and I are both old enough to remember the 1970s when gold went up forty times. What was that but a decline, yes a very rapid decline in the value of the currencies gold was priced in. In Canadian dollar terms the decline in value versus gold continued at an even greater rate of decline for longer. What I am saying is hey watch the global economic factors and then make a decision if that preselling of your 18 million ounces of reserves is all that prudent. Fifteen years cuts both ways.

To: Enigma who wrote (2338)	4/4/2002 9:32:41 AM
From: nickel61	Respond to of 3558

I do know something about gold mining investment.And understand as you do that at even $400/ounce gold every promoter in North America will be back in business trying to push his newest gold mine story. That is clearly true and over time the amount of gold in production will rapidly adjust. We were starting to see that in 1995 when this whole sceme was begun, maybe not coincidentally, to allow the Central Banks to be able to sell off their excess gold reserves before the likes of the Canadian Gold investment community raised enough money and found enough new production to really take gold to $100/ounce forever. The thing you want to remember is it will take time and the costs of the imputs will change fairly significantly and this will also affect the rate these new gold mines come on line. As we both know it isn't easy to find world class projects and bring them on line even at $400/ounce...at $600/ounce I would agree that there would be a leveraged increase that would appear I am sure.