Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : At a bottom now for gold? -- Ignore unavailable to you. Want to Upgrade?

To: Bill Murphy who wrote (1216)	6/24/1998 12:37:00 AM
From: Ahda	Read Replies (1) \| Respond to of 1911

Now i am beginning to speculate on Asia buying gold between this the bridge bank and creation of a World financial organization biz.yahoo.com Japan premium widens on worries over banks TOKYO, June 24 (Reuters) - The Japan premium, the extra cost Japanese banks have to pay in the euro interbank markets, widened on Wednesday due to deepening worries over some Japanese banks, bankers said. For three-month euroyen interest rates, the premium was 30 basis points (BPS) over the 0.38 percent European and U.S. banks with better credit ratings are paying. The premium was 24 to 25 BPS on Tuesday and 20 to 21 BPS on Friday. ''The growing possibility that the Long-Term Credit Bank of Japan will be eventually shut down is making investors and foreign banks extremely wary of offering funds to Japanese banks overall,'' a trader at a foreign bank's Tokyo branch said. In the eurodollar market, the premium also rose, making it difficult for some major Japanese banks to raise as many dollars as their commercial needs warranted, bankers said. In the forward currency market, those Japanese banks also had difficulty raising dollars because some foreign banks reduced their exposure to them, they added. Some speculated that those Japanese banks that are facing difficulties in procuring funds in the interbank money market may be tapping the spot dollar/yen market, pushing the dollar up against the yen this morning. ANGKOK, Thailand (Reuters) - The United Nations on Monday called for the creation of a World Financial Organization (WFO) to formulate an international debt strategy to tackle Asia's growing financial crisis. www2.cnnfn.com

To: Bill Murphy who wrote (1216)	6/24/1998 1:14:00 PM
From: Ray Hughes	Read Replies (1) \| Respond to of 1911

Hi Bill, One of perhaps two major keys to POG outlook is net CB trading. Shift to neutral would be helpful but US Fed could still trade a neutral market to set POG flat. We need, also, major buying sentiment shift by public that would swamp Fed gold selling. What starts that - Asian anti-dollar backlash? I put a lot of credibility in that. Trouble spot, though, is long term record showing POG does not rise when World "real" interest rate is positive as is now strongly the case. Currencies must be discredited by strongly negative real rates. Hence, before POG rises I believe CBs must see need to inflate their way out of a credit bust. Is inflation in the cards when money supply has disappeared down the Asian black hole? RH