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

To: Gary who wrote (7088)	2/2/1998 2:25:00 AM
From: Zardoz	Respond to of 116764

"MUCH larger per capita debt than the U.S." Not anymore! The exchange rates took care of that. Where do people get this crap that the Canadian dollar is under pressure? And may fall to $.60 US. There is NOTHING wrong with the Canadian dollar. The PROBLEM is the US Dollar. First Go to this site: pacific.commerce.ubc.ca Eneter the Canadian Dollar as a base currency and compare it with Mark, Yen, FFranc. These are the more stable currencies in the world. In each of these the CDN Bux has appreciated. With the USD, BP the CDN dollar has decreased... But who's better off? The US has taken the fiscal policy of floating there economy on the back of M2 cash expansion. By increasing, or inflating the US dollar at this rapid rate, they undermine the basis of their currency. This currency inflation is causing the Gold price to decrease, and market to increase. The most recent change in the POG,{within 1 month} is directly related to the US dollar rate against the YEN. When the trend changes again, and the US Dollar reappreciates, the POG will once again decrease. This is the nature of GOLD in todays market. And this is why the gold rally is weak. Soon, the US Markets will reach a point where it is cheaper to import finished products, such as cars, fridges, appliances, than to build them at home. And when the market crashes you will see a true GOLD rally. Look back to mid summer when the first signs of Deflation was shown in the 6 straight month of negative PPI. This is a sign of currency inflation, lead by Greenspan. Sure it looks great, but carries little real purchasing power, as foreign importers gain market share. The comparision between Canada and the USA is similiar to Oranges and Apples. One is based on a socialists activity, and the other is quasi-capitalism {rich get richer, poor get poorer, and the mid class joins one or the other}. The downfall of the USA country is based in it lack of compassion. It keeps the poor from health care, and caters to the rich. People are saying that there is a massive short position on Gold, and that it will have to be covered. But in reality the gold is primarily lower in US dollars only. Although the US may be the main medium for the purchase of GOLD it isn't where the vast majority of gold is dug up. Supply and demand always form a crossover point, but few realize that it takes less than a month to bring online old mines. So if a gold shorter want to cover his position as many have, they only need buy the gold producers....or the options on the producers. So in essence most of the Gold players have already covered...not against delivery, but against the price spot of delivery. If Gold goes from $280-$310 {10.7%} Most gold producer moved from {ABX $22-$29.5CDN} {34%} Therefore the Price rate of change for the producer is hirer! And with some companies you can buy a Gold dividend preffered share, so many hedges need never buy Gold to cover. Just pay the cash difference. Hey mister lender, would you like your 1 once of gold back at todays $302.5/oz or shall I give you $305 USD? Gold going down to $290-$285 by FEB 20, 1998. You heard it here first. And if you are a Canadian, and want to leave... do so now!