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To: tyc:> who wrote (16589)	10/20/2004 1:19:47 PM
From: jpthoma1	Read Replies (1) \| Respond to of 312313

«Even when the US industry is enjoying lower costs BECAUSE OF the fall in the value of the US dollar» Warning! If the US company is operating in Canada, it's costs are climbing if expressed in US$. Only companies operating in the USA or in countries using the US$ see their costs lowering when US$ goes down. Actually, US mining companies with operations in US profit a lot from the US$ descent and the corresponding higher gold price. They benefit on the two sides! That's why I can't understand those saying that the US (especially Barrick) controls the price of gold. JP

To: tyc:> who wrote (16589)	10/20/2004 1:53:51 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 312313

Tyke, The only way to understand the difference between gold and fiats is to look at history. Governements come and go and so do fiat currencies. There are dozens and dozens of examples. These events span over mutli-decades. So observing a very short term perspective of 10 years will not help understand why gold is the only true money.

To: tyc:> who wrote (16589)	10/20/2004 2:07:43 PM
From: rubbersoul	Read Replies (1) \| Respond to of 312313

Thanks, Tyke. It appears to me that rising costs for Canadian gold miners due to a rising loonie could be offset by a rise in the gold price. But since the US is Canada's main trading partner don't you think the loonie is bound to fall along with the US$? John

To: tyc:> who wrote (16589)	10/20/2004 4:00:04 PM
From: Lhn5	Read Replies (3) \| Respond to of 312313

The issue is much more complex than you are admitting. There are lots of perspectives and arguments you could take. For example, if the Canadian Dollar is rising, and foreigners have the perception that it might rise more, then that could increase overall demand for Canadian denominated assets such as stocks, and prices may rise. The secondary effects of changes in currency values may often outstrip the precise quantitative effect alone.

To: tyc:> who wrote (16589)	10/20/2004 5:42:38 PM
From: Cogito Ergo Sum	Read Replies (2) \| Respond to of 312313

Interesting that our gas price at the pump jumps 10% overnight when the price of oil jumps... despite the loonie appreciating.. I know I know that's a scam... When oil was not going up relative to the loonie in December pump prices still went up... and the sheep bought it... Now if oil drops there is less demand for the USD viewed as a commodity ... so it should drop and POG go up... but today oil and gold are both up... So I guess my point is not one simple relationship or answer is worth more than a teaspoon of flypoop to quote an old highschool buddy of mine... (that I have not seen in nigh 30 years)