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

To: Crimson Ghost who wrote (5054)	1/1/1998 1:45:00 PM
From: John Stopforth	Read Replies (1) \| Respond to of 116753

George Very nice take on the gold situation I agree with you. To add to what you are saying I believe the US dollar will weeken sooner than people think. The US dollar has gone up to every currency in the world, 100% to the Korean won, 30% to the Japanese yen and 7% to the Canadian dollar, the largest trading partner of the U.S. Because of the dollars increase, earnings for most major US companies will go down or remain flat due to the currency translation. The stock market will react negatively and the Federal Reserve will be forced to reduce interest rates. They will however only reduce rates slightly at first, they should have reduced rates in December, too little to late. A second reduction will be neccessary to stop the market slide and investors will see this as a panic move and the dollar will weeken. Due to the lack of confidence of investors and a weeker dollar, gold will go up. I'm not sure how much but it could be substantial. The short position on gold is hugh, mines are shutting down and gold production hasn't kept up with demand. I've been buying selective gold producing companies for the first time in a year. I'm buying companies with the most leverage, those that are losing money right now and whose shares reflect their poor financial health. Happy New Year John