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Gold/Mining/Energy : Cartaway resources -- Ignore unavailable to you. Want to Upgrade?

To: John Paquet who wrote (1753)	5/17/1998 1:56:00 AM
From: John Paquet	Read Replies (2) \| Respond to of 2505

I am thinking gold will test that $315 with less 7 days [dreaming if it is not right.] gold will break new hi with 2 weeks, and will reach $347.50 by end of JUly and $369.50 by end of September 1998. As a result of this bullish forecast, CWA will reach .25 with less 7 days, CWA will break new hi with 2 weeks and will reach .45 by the end of July and .89 by the end of September. And Cartaway II scenario, when CWA starts re-test that Cirque properties and Okak Bay areas 1.6, 1.7, 1.9.......2.3, 2.4 , 2.5 looks real.

To: John Paquet who wrote (1753)	5/18/1998 4:51:00 PM
From: Zardoz	Read Replies (1) \| Respond to of 2505

"Any ideas why gold could not compete with these precious metals?" YES. You can never compare metals on a 1:1 bases ever, it's like Apples and Oranges. Gold is both a commodity, and a currency. As such it's value is determined from BOTH of those forces. Nickle, Palladium, Platinum, are metals only. So why is GOLD trending against the metals.... it isn't. It's the currency portion of gold that is trending down, relative to the currency inflation of the G8. The base metals are driven by simple demand/supply in which you must take warehouse supply {or lack of} in consideration. So since GOLD is priced in US Dollars, which has the largest noticeable effect on the price of gold, how far could it go down? IF THE US FED RAISES RATE, you could see the US dollar appreciate against the remaing G7 currencies, and thus gold could drop. {Yes I do have price limits} But would it necessarily change value in MARKs/YEN/CDN$. So really the POG is an illusion relative to where you are. Hedging: Many a gold Guru would suggest that CB selling has pushed gold down. Well to a small degree, yes. But if Gold had significant value, all the CB selling would have zero effect. But consider this. I borrow X amounts of gold from a bank, pay the borrowing costs. Sell the Gold, buy gold companies straddles {really don't need stradles if you include a currency hedge} on equities that pay a dividend in gold, and wait. Succesfully hedging can allot me more options than gold selling, giving me a multipler against the gold movement. This is the basic of hedging. And a hedger has more ways to do it than this. PS: Under DOW theory, the DOW Industies should be tanking after Tuesday, to catch up to the Dow Transports {-10%}. But I still see the DOW reaching 9365, before correcting on June 23, Down 25-55%. Due to foreign/world deflation. And I expect a raise hike soon/big .50% or more.