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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: jrhana who wrote (22375)	11/26/2002 2:52:49 PM
From: Sharp_End_Of_Drill	Read Replies (1) \| Respond to of 36161

The article was most definitely racist, but if you can look past that I think it was basically correct in terms of long term investing in anything South African. The process of nationalization has begun, and it will not be stopped by anything. Ayn Rand to the nth degree. Sharp

To: jrhana who wrote (22375)	11/26/2002 7:43:45 PM
From: newfoundland1	Read Replies (1) \| Respond to of 36161

I am sorry you found my post incoherent - perhaps it was - I will try to elucidate, at least on the first paragraph. I would have thought the second was very self explanatory. I was replying to your earlier posts which inferred that Mineweb, a South African publication, was putting the skids under MDG so that they could cash in their SA Gold shares - which are in danger of going down the tubes anyway because of your view of SA politics- and buy MDG cheaply. Mineweb is run by South Africans but if you have read their material over a period of time you would know that they hold not entirely disimilar views about the prospects for SA and the dangers of investing there from the article you so agreed with. In fact some of their respondents are wary of the editorship for that very reason. Leaving this aside I was pointing out that although SA Gold Stocks were currently in a period of weakness, the Rand (the SA currency) was, in an otherwise rather static currency market, rapidly appreciating against the world's major currencies. Large amounts of dollars, euros and pounds are buying rand ! Now such quick and significant changes in the value of a currency cannot happen because little folk like us and afficiandos of SI message boards wish it so but only because large quantities of institutional money wants to change the weighting of their portfolio positions - in this case in favour of the South African currency. Why should this be ? Well it could be short term and technical - a rapid appreciation spike ! - not easily understandable and with the danger of some overnight new "appropriation/confiscation/nationalisation" of assets decreed by these black Communists, so feared by your article writer, this looks an unnecessary risk. More likely, is it not, that smart money thinks a gold and resource rich country like SA is now a good place to be. This despite the fact there are other ways to invest in such assets without the political risks of holding Rand. Alternatively there might be wind of further measures taken by the SA Government to allay investor fears or other trade agreements signed with the US, for instance, which these institutions think will make others realise that the discount that already applies to SA assets is overdone. I don't know the answer to this but the recent rapid appreciation of the Rand is a fact and is potentially of some significance. Particularly to those of us interested in Gold. The realisation of this should give you pause for thought - not only in your very dubious thinking behind the MDG Mineweb article, but also as to the validity of your concerns over the likely "fate" of SA where you appear to think that, however pickled their mindset, the views of these doomsters are objectively correct. I hope what I thought I was saying the last time round now makes more sense. I would genuinely be interested to know why you think the Rand is currently appreciating so rapidly. Wyatt PS Somewhere in this line of messages russwinter was mentioned. As far as I am aware he has always been agin SA Gold Stocks, thought DROOY was a dog at less than $1 and HGMCY and GFI not for him when they were selling at $3-5. Oh well. But do not let me sidetrack you. Why do you think the Rand is appreciating ?