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

To: Gramps who wrote (623)	12/4/1997 1:21:00 PM
From: M5PRO	Read Replies (1) \| Respond to of 769

Gramps, Here's an article that I just picked up. It's negative yet there are a few positives within the release! C-YA Matt Thursday December 4, 9:45 am Eastern Time Gold to find support at $270-275 per oz -economist HONG KONG, Dec 4 (Reuters) - Gold will find support at $270/275 per ounce, Martin Armstrong, chairman of Princeton Economics International said. ''It is very difficult to get gold into the boom market, as long as they (market players) viewed that all these central bank sales will suppress it any time,'' he said. Gold prices slipped further on Thursday to $289.85 per ounce at the London fixing, a fresh low since early/mid March 1985. ''The big spikes in gold always come when the currencies are undermined,'' he said. The further the falls, the more the trend perpetuates itself but the stronger the rally would be after that, he said. In late 1996, Princeton predicted gold would likely break support at $371. Looking forward, Princeton predicted that gold would fall to a low of around $230 before rising to $875 before the year 2003.

To: Gramps who wrote (623)	12/4/1997 11:42:00 PM
From: Blue	Respond to of 769

Gramps, not long ago I looked at historical gold prices. It isn't exactly eons since gold was at $35. 1971, to be exact. Since it is so hard to peg commodities like this against currencies I personally suspect it might be better to take a LONG historical view. Just checking on the Kitco page I see through the period of rapid inflation from 1970-1980, the POG rose from a bottom of $35 to a high of $612. Of course we would need to come a long way back in terms of massive deflation to get the value of a dollar back to say 1971 levels, but the combination of declining inflation fears and the loss of gold's status as money could leave us "anywhere". Eventually, I presume, mine closures and the long-term global demand for the metal will create a situation where the price once again starts rising, but who knows when that might be. Apparently in the latter part of the 19th century silver lost much of its value as it was 'demonetized' and took 90 years to recover its value. While increased demand for gold and overselling (lending out) by central banks and speculators could create a short squeeze and rebound, there is no reason in my view why gold mightn't fall as low as $97, in other words back to ground zero, 1973. Which is a real bummer for all of us who were using gold and gold stocks to 'hedge' against other kinds of problems. Hope I'm wrong! Meanwhile I'm wishing that massive hidden demand for copper (sparked by IBM's new design for computer chips) will rocket copper prices skyward. Ah, but wishing don't make it so. Geez, I just don't see why a little currency crisis would stop anyone from putting in pipes or improving telephone service in 3rd world countries.