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To: Gary who wrote (636)	8/17/1998 3:01:00 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81023

Gary: The relationship between gold, valued in $AUS, and gold, valued in $US, is simply the inverse of the relationship between the two currencies --- ie the lower the $AUS, the higher is the gold price in $AUS, and vice versa. In fact, it is very confusing and, indeed, misleading to look at the gold price in any currency other than $US and then to extrapolate that observation to the gold price as quoted in $US. Unfortunately, it is a technique which certain "goldbugs" love to employ as the basis of their argument that the "gold price" is rising. For example, in SAfrica, where I live, as result of the massive depreciation of the local currency (Rand) there is, in fact, a "bull market" in gold --- but quoted in Rands. In fact, the SAf gold price, at +/- R1800, is at an historic high while, in $US, the POG is at an almost 20-year low, as you may know. Nevertheless, if one lives and invests in the country where the depreciated currency exists one can participate in that "bull market". But, only if one lives there and does not have to change the local currency into some other.

To: Gary who wrote (636)	8/17/1998 4:17:00 PM
From: Bill Murphy	Read Replies (1) \| Respond to of 81023

Gary, Nothing wrong with chart analysis. The market cannot go up if the charts always looks lousy. Personally, I agree with you. If you have the talent to be a good technical analyst and combine it with a good understanding of the fundamentals, you have the best chance of making money over a period of time. I came into the commodity arena under all brilliant fundamentalist economist types. One was Dan Ritchie, a brilliant man who pined over little details. He is now the Chancellor at Denver University. The second was Ray Dalio of Bridgewater Associates who is also a mega success, especially in the fixed income area. When I met him we were doing cattle, feeder cattle, corn arbritrages. Both of these guys stressed fundamentals but respected the technicals so as not to be hit by a truck. Bill