Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Richnorth who wrote (2457)	10/25/1997 2:31:00 PM
From: Daytek77	Read Replies (2) \| Respond to of 116870

Hi Richnorth Sorry to interject here. I read a previous article in the Globe and Mail posted here : techstocks.com which states that the all-in costs to produce an ounce of gold are around $330. If current prices continue you will see many cancelled deals like Echo Bay's abandonment of the King-King project in the Phillipines Friday. Barrick previously announced closing 5 higher cost mines. I feel you will also see many South African and Australian projects uneconmic and we have already seen exploration grind to a halt. If current demand stays where it is, the Central Banks are going to have to sell all their gold to prevent an increase in its price. The rationalization in the gold industry is the exact opposite of the environment when gold hit $850. The short-term will be very painful but those companies that are able to perservere will reap huge rewards. The monetary system is teetoring right now with the South East Asia problems. I read that Japanese banks have huge exposure to Hong Kong companies and the Japanese economy can ill afford any more bad economic news such as a banking problem. There will be more attacks of Hong Kong's pegged dollar and the turmoil will be felt all over the world like it was this week. We are definately in a new era but not the one most pundits thought. All the best Tony