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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (797)	6/27/2002 5:18:20 PM
From: jjkirk	Read Replies (1) \| Respond to of 89467

Scott, Nice interview with Caesar Bryan. While we're on the subject of gold funds, here is a philosophy statement from John Hathaway of Tocqueville Gold Fund, mentioned last week by JW. Philosophies are similar, however, for some reason, Schwab awards Tocqueville less risk than Gabelli. However, Gabelli has outperformed T this year, which would agree with the risk/reward formula....jj tocquevillefunds.com O Brother Homestake, Where Art Thou? “If I buy a gold stock, it’s because I expect the gold price to go up. Why then would I buy shares of a company that hedges the gold price?” Such concerns are the subject of frequent e-mails to the Tocqueville web page asking what exposure The Tocqueville Gold Fund portfolio (TGLDX) has to hedged producers. Do investor preferences make any difference to the performance and valuation of gold equities? It has seemed indisputable to me for years that exposure to a rising gold price creates value while hedging detracts. It is clear that the top performing shares of the last two years have been the unhedged producers, while the laggards have generally been lugging a hedge book. Over the past two years, the Amex Gold Bugs Index (HUI) rose 137% versus 49% for the Philadelphia Gold & Silver Index (XAU). The HUI index consists of unhedged gold equities, while the XAU is dominated by Barrick Gold, Placer Dome and Anglogold, three of the leading hedgers...(much more)..." tocquevillefunds.com

To: stockman_scott who wrote (797)	6/28/2002 11:21:27 AM
From: Jim Willie CB	Respond to of 89467

quick answer of my own question on gold non-response the European continent now is facing the opposite of what the US economy is facing their euro currency is rising imported US products are coming down in price they have disinflation, if not deflation prices will be coming down they wont hedge with gold in such cases Europeans also are seeing asian currencies rise just about evenly as the euro the yen and euro have each risen about 12-15% versus dollar in recent months the euro/yen ratio is steady so perhaps not until price pressures rise in the US from imports will gold see significant pressure coming this autumn or winter / jim