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

To: PaulM who wrote (2776)	11/3/1997 7:44:00 PM
From: Al Cern	Read Replies (2) \| Respond to of 116830

A fall in the US dollar, and or higher domestic interest rates, would put an end to this party very quickly. No exporter to the US, not even Japan can afford to let this happen. This is why they send all the US dollars back as investments, and or purchases of capital goods, so the dollar won't fall. Think of what would happen if every net exporter exchanged their US$ for something else. The problem is that at some point things will get so far out of kilter that the "masters of the universe will step in" as they have in other countries, and give US a dose of reality. Warren Buffet I guess thinks that the result will be deflation sooner than later, given his purported purchases of bonds, (I wonder what maturity his zero coupons have?), I'm not sure that every govt. won't try to prolong the party as long as they can, making the crash more severe in the end. Personally I'm very comfortable being very long gold, and I hope the party lasts until I sell some of my real estate and other investments. Sincerely, Al Cern PS Buying gold mining stocks, with low production costs, or juniors with economical reserves is a very very very attractive proposition. There are so many beat up companies in this sector, you can pick them over and drool.

To: PaulM who wrote (2776)	11/4/1997 12:07:00 AM
From: Wade	Read Replies (1) \| Respond to of 116830

Hi Paul, You wrote: >Instead, the Asians have now become net sellers. It is as though >all the (quasi governmental) central banks have agreed, by >common consent, to rely on the dollar for currency stability. >Essentially betting on our economy and the U.S. governments >adeptness at "managing" our currency. Could you cite the report that Asians are net sellers? I have some degree of reservation of this statement. The devaluation of many Asian currencies was much faster than drop of POG. Actually, gold holding protected their savings. Natually, holding US dollar is a better investment at this momnet. Actually dollar was a very poor investemnt a few years ago when many of those currencies appreciated against dollar. Dollar has gone through very wide swings in the recent years. It is not necessarily a better vehicle than gold if one can compare the charts of these two. Asians so not buy gold for investment. They have too many other ways to make quick bucks. Gold is a symbol of "wealth" and "forever" for many people, and also it is a protection in case of disasters or emergencies. They rarely sell their gold holdings unless it is absolutely necessary. Asians have very different reasons to hoard gold. Well....these are my 2 cents. Sincerely, Wade