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

To: Enigma who wrote (10967)	4/29/1998 9:56:00 PM
From: Mark Bartlett	Respond to of 116764

Enigma, <<I'm not sure I buy into the scenario that y2000 problems will mean a rise in the gold price. Isn't the connection somewhat tenuous? The argument is, I guess, that confusion leads to people putting their money into gold - but wouldn't they simply put their money in T.Bills or money market instruments?>> I think the thinking is - you can not get screwed by a hard physical asset. IMVHO if one were to put money into instruments that rely on the the general stability of the financial system (which may be suffering dramatically due to Y2K problem) then your $$$ may also be in jeopardy .... as the system goes down the toilet - so goes your T bills. MB

To: Enigma who wrote (10967)	4/29/1998 11:34:00 PM
From: Wizzer	Read Replies (1) \| Respond to of 116764

I see your point Enigma. I was also thinking of what the resulting damage would do to most currencies, including the U.S. dollar. T-bills may not provide an adequate return for those that want to still be invested in something they feel will give them a better return. Hypothetical scenario: As the year 2000 approaches, the stock market begins to suffer due to investor concerns about the computer problem. Money starts to move out of the market, and investors look for other "safer" places to move their money. Coinciding with this movement, currencies like the Yen or the Mark begin to suffer or are suffering as by all indications, a lot of countries may be ill-prepared for the problem. In fact, markets like the Nikkei may be affected before North American markets. Investors would likely not opt for money market instruments or other similar investment choices that are based in currency. The gold and other precious metals will rise because of the demand for gold, thus the price of gold goes up. Certainly, it could be a mix of certain types of guaranteed investment vehicles, but I feel that would also have to include precious metals. There will be no guarantee that the US dollar will still be strong at that time. Interest rates may be increased and have an effect in the whole scenario. Personally, I will be looking for certain indicators at that time, which are namely, interest rates, the strength of foreign currency and the strength of foreign markets. Several major areas in the world are having economic problems that will not go away soon. I believe the "trickle down" effect from these factors weakening will cause a movement to precious metals, possibly in a very strong way. Of course, at this point in time I am speculating, but some of the problems are starting already. If or when this problems are magnified, there could be a serious resultant effect. We will have to wait and see what happens. If you accept a worse case scenario, it may be helpful in coping with the problem if it happens.