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

To: nickel61 who wrote (3117)	6/3/2002 7:59:12 AM
From: Zardoz	Read Replies (2) \| Respond to of 3558

Of course it's different. Excess gold is hurting the Swiss. Gold in USA has no effect {thus is wasted holding} Gold in Canada is moot. {and is thus a free floating currency} Japan may buy gold, but only to throw Yen into the market place. Euro, is a diverse currency driven by dichotomy, and thus gold holdings is inept Russia needs stabilation before they can go forward. And this was the result of going to democracy before they had an economic basis and tax base. Korea's actions in the past was a result of desperation between growth and deflation when the economics over ran the fundamentals. Gold's 'expenditure' valuation is still only around $275 +/- $10 range / USD Fixed. But this rally is based not on fundamentals, but technicals. It is an aberration of both US currency & technical currency manipulation {G7} It is unlikely that the Japanese and Euro will allow the USD to depreciate going forward & the growth rate relative to loose money would suggest that any US Dollar weakness going forward will become harder to find. Thus the Gold Rally is nearing and end. Speculation in to WHY the US Fed has kept the Fed funds rate so low only suggests that they want to push growth into the 7% range and have inflation grow going forward. Inflation can easily be found in Real Estate prices in the US. Real returns on US Bonds is still in the gutter and the next Bull market is likely 3-6 months from Now. This market malaise is likely to continue for 3-4 months, and no return to profitability for 6 months. The financials almost always lead the broader market in any bull markets, and Techs are the laggers. There is no markets strength yet, and thus sector rotations will continue. Gold does well in sector rotations but WHEN the gold sell off they will get hit hard and fast. That is the nature of US dollar strength effects.