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

To: Bobby Yellin who wrote (10958)	4/29/1998 8:59:00 PM
From: PaulM	Read Replies (1) \| Respond to of 116764

Central Banks Losers in Gold Hedging...... Gold is "the only commodity where a forward sale does not need a counter party with opposite views on price" biz.yahoo.com If some miners are beginning to qeustion the value of hedging, it's yet another sign we are entering a long term gold bull.

To: Bobby Yellin who wrote (10958)	4/30/1998 8:35:00 AM
From: kingfisher	Read Replies (1) \| Respond to of 116764

Sector Focus: Tocqueville Goes Gold By TSC Staff 4/29/98 6:06 PM ET Tocqueville Going for Gold With gold playing a close second to Albanian pyramid schemes as the worst investment in recent years, it's no surprise that fund families haven't rushed to expand their offerings. But with gold prices and equities jumping this year, it was only a matter of time before new gold funds hit the block. Up first is Tocqueville Gold, which is slated to open in late June. The last gold fund to open was Gabelli Gold in 1994, according to Lipper Analytical Services. The severe beating that the commodity has taken in its 18-year downward spiral, combined with several catalysts, have Tocqueville, a contrarian value shop, optimistic that it is starting the fund in time to catch gold's bull market. "The derision in the financial press ... is so thick that it gets our juices flowing," says John Hathaway, who will run Tocqueville Gold. "Gold could be where Treasury bonds were in 1982, when they were called certificates of confiscation." In making the case for gold, Hathaway says that he thinks most analysts are underestimating the likelihood of inflation reappearing, given the strength of the U.S. economy. He adds that the upcoming European Monetary Union will have the salutary effect of creating one gold policy for the continent. At present, gold selling by one country's central bank can set off similar moves by other central banks. The countries with the most votes regarding how much gold the new Central Bank will hold are Germany, France and Italy, all of which have a substantial interest in seeing the metal head higher. "The risk in owning gold is very low," Hallaway says. "We might be a year early, but we'd rather be early than late." Reasons behind the sharp spike in gold funds, up 21.9% year to date through Thursday, were detailed in a TSC story last week. Tocqueville has been building up a position in Newmont Mining (NEM:NYSE) in its funds over the past two years. Because gold is a separate asset class, Tocqueville has decided to open a new fund rather than add more gold to its equity funds. The new fund will be required to hold at least 65% of its assets in gold. Hallaway expects to invest in some other inflation hedges such as palladium and other metals. He will be looking at Stillwater Mining (SWC:AMEX), a miner of platinum and palladium, and nickel producer Inco (N:NYSE), both of which are currently Tocqueville holdings. Hallaway was the chief investment officer at Oakhall Capital Advisors before he joined Tocqueville in late 1996 as a portfolio manager running separate accounts. Go Global for Gold Elsewhere in goldland, Fidelity has sent out a proxy seeking shareholder permission to change the charter of Fidelity Select American Gold to allow for more diversification. Currently, the fund must invest "at least 80% of its assets in North, Central and South American companies engaged in gold-related activities, and in gold bullions or coins." If approved by investors, the words "North, Central and South American" would be deleted, allowing the fund's manager to invest in more global stocks and the name will be changed to Select Gold Portfolio. -- Avi Stieglitz New Fido Fund to Capitalize on Aging Boomers Today Fidelity opened a new Select fund, the Select Medical Equipment and Systems Portfolio. The goal: to offer investors full exposure to the health-care sector so that they can capitalize on the aging of America, Fidelity says. Kerry Nelson, a medical device analyst with Fidelity since 1995, will manage the fund. -- Tracy Byrnes See Also SECTOR FOCUS ARCHIVE ÿÿc 1998 TheStreet.com, All Rights Reserved.TOPÿÿ\|ÿÿABOUTÿUSÿÿ\|ÿÿCONTENTSÿÿ\|ÿÿSUBSCRIBEÿÿ\|ÿÿADVERTISEÿÿ\|ÿÿTRADEÿONLINEÿÿ\|ÿÿFEEDBACKÿÿ\|ÿÿSEARCHÿÿ\|ÿÿHELP