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

To: Broken_Clock who wrote (6791)	1/26/1998 1:21:00 PM
From: Robert Morris	Respond to of 116908

GOLD NOTES - A DEFLATIONARY VIEWPOINT From the Innver Circle - investor1.com Inner Circle Vol.3 No.6, January 22, 1998 GOLD NOTES - A DEFLATIONARY VIEWPOINT Many well respected financial gurus are claiming that the signs of an deflationary environment are unfolding before our eyes. Though many feel mild deflation will not impact on the price of gold, severe deflation certainly would and in a big way. For those of us who live in the US and Canada, our perception of a deflationary scenario is somewhat muted as we have not had to deal with major currency or real estate meltdowns. Of course this is not the case for those people who live in South Korea, Taiwan, China, Indonesia, or Japan where their respective currency problems have vaporized personnel wealth in very short order. Some owners of leveraged assets are forced to liquefy their holdings consequently driving asset prices down further. One curious aspect of the Asian monetary problem is that for each county that has experienced deflation as a result of their currency melting down, the value of owing gold in that respective currency has been very positive. In fact some of those fortunate souls who did have gold holdings are now selling gold in order to make ends meet. The current currency crisis in Asia, many fear, will spiral out of control around the world as various spending programs and bailouts take place by domestic or foreign governments who can ill afford to do so. We have already been witness to this over the past few months. We may look back at these times and say, oh yes, the writing was on the wall forecasting a major market and currency meltdown. Looking at past events can give us 20/20 vision however living and dealing with events in the present time can be confusing and blur the facts. One thing is for certain. These are interesting times and perhaps we should take heed to those gurus who recommend a portion of your holdings should be in gold, just in case. Just yesterday IBM released the following ominous news... U.S. Stocks Fall on IBM Corp. Earnings Warning: - Blue-chip stocks reeled after computer giant International - Business Machines Corp. said the Asian currency crisis - eroded its profits and could hit earnings going forward. - Jan 22 7:08 AM EST GOLD NOTES-MORE ON SWITZERLAND Back in November you will recall the Swiss were making noises about selling half their gold supply. At the time I stated my opinion that Switzerland had more to gain by holding gold then any other country in the world and predicted that they would not sell an ounce. So far, this prediction seems to be holding true as Jean-Pierre Roth, Vice-Chairman of the Swiss National Bank recently stated "We are convinced that gold will continue to play a role as a currency reserve, especially in times of crisis. . .Those who expect massive gold sales from us will be disappointed."