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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (8162)	1/15/1998 10:40:00 AM
From: Jan A. Van Hummel	Respond to of 20681

Henry, Gold is done. There is plenty around. I have no illusions of gold returning to its past eminence, although I wish it would. Naxos' sole "raison d'etre" will be the fact that they will likely be able to recover gold at a much lower cost than most of the currently operating mines thereby displacing existing capacity. This is the real threat to the gold mining industry if the goods are there. Having said that, there is still the issue of platinum. The platinum market has none of the oddities of the gold market. There is a fairly balanced demand-supply situation and if anything, the market is tight. Also, there are no excessive stocks overhanging the market. If the FL field has economically recoverable platinum it will be whole different ball game. The same applies to palladium and any of the other Pt-group metals. JMHO Jan

To: Henry Volquardsen who wrote (8162)	1/15/1998 12:02:00 PM
From: Jim	Read Replies (1) \| Respond to of 20681

Henry, In a nutshell, the article gives two individuals differing opinions on the subject. The two opinions were from Lawrence Kudlow and Anna J. Schwartz. The main points of Kudlow: 1. Gold is the best measure of monetary value, rising and falling according to expectations of future inflation. 2. With inflation now near zero, the decision by central banks to dump gold is a rational one. 3. Last year gold was a better predictor of inflation than nearly all other indicators. To which Schwartz countered: 1. The price of gold used to signal future inflation, but now gold is just a commodity, like any other. 2. Central banks are dumping gold because they can achieve price stability without it. 3. Investors don't need gold to hedge against inflation; derivatives work just as well. Thanks for your response to my post. From your thoughts I guess you would be leaning more towards the opinion of Schwartz then. Jim