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

To: Cascade Berry who wrote (3909)	12/6/1997 11:16:00 PM
From: Jim Ilchyshn	Read Replies (1) \| Respond to of 116815

Cascade, I wouldn't bet my last dollar on oil prices collapsing much further. The new higher OPEC quota may seem bearish for the price of oil but in reality the output from the OPEC nations was already close to the new quota. Even with a slowdown in world growth with the currency turmoil, oil is a necessay building block in increasing the standard of living. I don't know the current figures but a year or two ago the average annual consumption of oil by the Chinese was one barrel of oil per capita. Compare this to 20 barrels/per capita in the U.S. and it doesn't take a genius to figure out what a small increase in Chinese consumption does to worldwide demand. It was only at the beginning of the year that Martin Armstrong was forecasting $30/barrel oil for the average price. I agree with the darned good values in junior golds at the moment. Good Luck, - Jim.

To: Cascade Berry who wrote (3909)	12/7/1997 12:40:00 PM
From: MUDMAN	Respond to of 116815

Cascade: Please be more active with your posts. Your thinking I believe is right on the money (I am biased - I agree with everything you say). I believe the Swiss announcement of coordinating gold sales is more significant than Friday's market gave it credit for. Each new announcement of "bearish" news has less meaning and impact on gold. We are close to the point of maximum pessimism. I am also not a gold bug or an "end of the worlder/doom and gloomer" but ultimately supply and demand will prevail. The supply/demand senario for gold is great. Can you offer an opinion to the theory that there will be a short squeeze in gold? Also might you e-mail to me which jr's you particularly like in here? Keep up the good work. Thanks Mudman

To: Cascade Berry who wrote (3909)	12/7/1997 3:36:00 PM
From: Terry Rose	Respond to of 116815

Thank you for your historical perspective on the ratio of the TSE Gold index vs. TSE Composite index. This is further evidence of the market extremes currently in place. I agree with you on the benefits of contrary investments, and buying in now is a good idea. Your trading plan seems well thought out. Welcome to the party. I stumbled on S.I. while researching a junior gold, and this thread has been invaluable and diverse in it's contributors. As far as being a permabull in gold, I am probably one. However, a better description would be that I am a permabear on the various paper currencies, and especially my own the U.S. dollar. I have a problem with placing a lot of value on debt, to me this is a liability not an asset. With the U.S. debt (official, who knows the real amount) at 5 trillion dollars and rising, the government has three options to sevice the debt: 1. Operate at a surplus through either tax increases or reduction in spending 2. Inflate the money supply and therefore reduce the principle owed 3. Default. Over the past few years the money supply (M-3) has been expanding at a 8-9% rate, so it is obvious that the #2 option is currently in play. Since dollar denominated assets are losing 8-9% of their real value annually, I am bearish on this investment vehicle. I could invest in other paper currencies, but they are also inflating thier money supplies with the exception of the Swiss currency and they are trying to devalue their own by decoupling from gold. Add all this up, and investment in hard assets is the only thing that makes sense to me. Gold, silver, oil etc., are all potentially sound investments. I like the gold stocks currently, because they are the most out of favor.