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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: austrieconomist who wrote (10980)	5/15/2003 8:17:06 AM
From: jrhana	Read Replies (1) \| Respond to of 39344

However the converse would probably be true Significantly higher borrowing costs would be a strong negative for the POG In fact POG has been behaving well and just recently there has been talk of even further loosening coincidence?

To: austrieconomist who wrote (10980)	5/15/2003 8:27:06 AM
From: russwinter	Read Replies (1) \| Respond to of 39344

<Lowering borrowing costs does not contribute to inflation and it is inflation that makes our PM stocks sizzle.> Ultra-low interest rates reduces the contango necessary for gold producers to benefit from hedging, thus eliminating the element of accelerated supply, that plagued gold a few years ago. Of course I've made my interpretation of the inflation question known before, so I won't repeat it, but this environment of low interest rates and a weak economy is killing the USD, and gold is benefiting as an alternative store of money or value.