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Gold/Mining/Energy : Caussa Capital (formerly Antares) T.CAU -- Ignore unavailable to you. Want to Upgrade?

To: bill718 who wrote (1869)	12/17/1997 9:19:00 PM
From: The Fix	Respond to of 4718

I think that this is worth reading. biz.yahoo.com Fixer

To: bill718 who wrote (1869)	12/17/1997 9:20:00 PM
From: Luc Beaugrand	Respond to of 4718

Rally in gold stock boosts TSE SANDRA CORDON TORONTO (CP) - A lustrous rally by gold stocks Wednesday boosted the precious metal index and lifted the Toronto Stock Exchange out of a six-day losing streak. The gold and silver index of Canada's premier exchange gained 8.36 per cent, its biggest single-day jump in a decade. That helped the TSE 300 composite index rise by 58.06 points, or .88 per cent, to close at 6,625.49. In New York, the Dow Jones industrial average fell 18.90 points to 7,957.41. The leap in gold values can be largely attributed to weakness in the U.S. dollar and continuing turmoil in Asian markets, said gold expert John Ing, president of Maison Placements in Toronto. "Gold's historic role is as a store of value ... and when you get volatile currencies, as we have, particularly in respect to the weaker U.S. dollar, it's very good for gold," said Ing. The U.S. dollar slipped against the yen Wednesday after Japanese Prime Minister Ryutaro Hashimoto unexpectedly proposed an income tax cut, as part of a larger economic stimulus package. The news - and government dollar-selling intervention - drove up the yen to its sharpest one-day rise against the U.S. dollar since January 1991. Ing also believes central banks, which have been selling off their gold reserves, are backing away from those plans. Gold prices jumped as high as $291.10 US an ounce Wednesday after recently hitting lows of about $280 US. That was far from its highs of $380 US per ounce in the past year. Ing thinks bullion will rise and fall slightly over the next months, but believes the trend will continue upwards. "I think we are going to get a testing period, but for a change, we're going to be going into the New Year with higher prices," said Ing. "It's a Christmas present for the gold bugs." On the TSE, gold mining giants like Barrick Gold Corp. saw share value rise $1.95 to $26.35 while Placer Dome climbed $1.55 to $17.55 as the gold index made its biggest advance since October 1987, according to the TSE. All this is too late for companies like Rea Gold Corp., which filed for bankruptcy Tuesday in the wake of low gold prices. Even Barrick, Canada's largest gold producer, has shut down five mines in Chile and the U.S. at a cost of $385 million US. But Ing said the gold mining industry isn't out of the woods yet. "I think that the industry, notwithstanding the rally today, still has some tough sledding. "If the gold price persists below $300 US, it jeopardizes some marginal producers and projects." Elsewhere on the TSE, financial services took a hit, dropping .83 per cent, lead by CIBC, which lost 30 cents to close at $45.80. In Toronto, 12 of 14 groups rose. After gold, metals and mining gained 3.29 per cent, oil and gas was up 1.72 per cent and real estate and construction rose 1.28 per cent. The decliners included financial services and merchandising, which was down .28 per cent. Advancers outnumbered decliners 617 to 451 with 280 unchanged in trading of a record 208 million shares worth $1.9 billion. The TSE 100 rose 2.97 points to 402.86. Among industrials, Ballard Power gained $13.10 to $115.00, Geac Computers added $3.60 to $44.85. Among oils, Tri Link Resources rose $2.00 to $20.00, Gulfstream Res $1.85 to $7.30. Among mines, Teck Cl A climbed $2.50 to $20.50.