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

To: lorne who wrote (3715)	12/1/1997 10:52:00 PM
From: Terry Rose	Respond to of 116815

Hi Lorne Whether or not, you would be a buyer of gold in an Asian country at the present time, depends on where your country is in the devaluation of it's currency. Since the devaluation of your currency has been primarily related to it's value to the U.S. dollar, and POG is valued in U.S. dollars a decision can be made on how quick your currency is devaluating vs. the rate of drop in the value of POG. If you think your currency will drop faster you could buy gold or simply the U.S. dollar, if you think the POG is headed down vs. the U.S. dollar. In the current gold market, the traditional supply vs. demand statitics used to invest (buy supply and sell demand) have not applied so far. It has been temporarily replaced with "fear of supply" vs. demand, which is helping to drop the price despite the large increase in demand. The Swiss annoucement today right after the POG broke 300 was predictable. I feel that they have beaten this horse to death. Who cares how much gold they sell? The current market would absorb all their gold reserves in short order if they were stupid enough to sell it.

To: lorne who wrote (3715)	12/3/1997 6:56:00 PM
From: lorne	Respond to of 116815

How long will this continue before the USA starts to take care of its own,seems like a lot of USD are going to Asia so they can buy American goods,? Guess I don't get it. Fed says Asian turmoil hurting U.S. exports Copyright c 1997 Nando.net Copyright c 1997 The Associated Press WASHINGTON (December 3, 1997 3:11 p.m. EST nando.net) -- American manufacturers and farmers are starting to feel the consequences of financial problems in Asia, the Federal Reserve said Wednesday. "Asian financial turmoil and currency weakness have adversely affected demand for manufactured and agricultural exports," the Fed said in its "beige book" report, a survey of economic conditions by its 12 district banks. "Some districts report increased competition from imports," it said. Economists had been predicting for weeks that the sharp devaluation of many Asian currencies would hurt the U.S. economy by reducing Asia's demand for American products and commodities and by effectively slashing the price on Asian goods selling in the United States. Wednesday's report, based on information collected before Nov. 24, is the first clear evidence that is happening. Five of the Fed's district banks -- Boston, Philadelphia, Cleveland, Dallas and San Francisco -- already have noted the affect of weakened demand from Asia. A sixth, Atlanta, said manufacturers are scaling back production in anticipation of weaker demand. Two regional banks -- San Francisco and Dallas -- said Asia's turmoil has hurt demand for agricultural exports.