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

To: philv who wrote (5861)	1/14/1998 7:00:00 PM
From: Crimson Ghost	Read Replies (2) \| Respond to of 116764

Phil: Gold is indeed more a commodity than a monetary asset as long as the greenback rules supreme. Asians are selling their gold to buy dollars. But when the day arives that the greenback is no longer king of the hill, then gold will regain its role as the monetary asset of choice. A very smart deceased economist (Eliot Janeway) said several decades ago that gold moves inversely to the currency of the dominant power. To that I say Amen! But even viewed strictly as a commodity gold has great upward potential with the price now below production costs for many mines. The yellow could well rally to the $350 area when European selling eases and Asian currencies and stock markets start to rally on a sustained basis. But a really big move to $400 or more is out of the question until the dollar's hegemony in global financial affairs is seriously challenged.

To: philv who wrote (5861)	1/14/1998 10:03:00 PM
From: Bill Grant	Respond to of 116764

Phil, You took issue with George's statement, and I would offer that a better construction of the basic argument would be "When a market and currency tanks, all demand except for basic subsistence needs declines or disappears". You can't eat gold, but if you are told that you can't eat at all unless you bail out your beloved leaders to live you just might be inclined to go along. Bill