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

To: J. Nelson who wrote (20819)	10/6/1998 9:58:00 AM
From: Giraffe	Read Replies (1) \| Respond to of 116858

Base metals prices plummet By Paul Solman Base metals plunged on the London Metal Exchange yesterday, with nickel and copper prices dropping to their lowest prices for more than a decade. Analysts said the metals suffered selling pressure from the bleak outlook for the global economy and indications of continued oversupply. "Stock markets are weak and people keep using the word 'recession'," said Martin Squires at Rudolf Wolff in London. "There's a feeling that any turnaround in base metals prices will have to come from a pick-up in the global economy rather than cutback in supplies," he added. By the close, three-month nickel was $3,975 a tonne, $110 below Friday's close and the lowest for 11½ years. Three-month copper had clawed back to $1,601 a tonne, down $19, having touched a 12-year low of $1,578. Tin ended off $50 at $5,220 a tonne. Crude oil prices retreated below $14 a barrel at one point in London on disappointment at the outcome of Friday's meeting between oil producers in Cancun, Mexico. The three countries - Mexico, Saudi Arabia and Venezuela - failed to announce plans for further output cuts, emphasising they were more concerned that oil producers comply with existing commitments to reduce supplies. "The general feeling is disappointment that the Opec and non-Opec producers appear to believe the existing cuts are enough," said Leslie Nicholas at GNI. However, he said sentiment remained stronger than in recent months. The market was waiting for today's weekly oil stocks data from the US, which would reflect the effects of Hurricane Georges. In late trading on London's International Petroleum Exchange, November Brent blend was $14 a barrel against Friday's close of $14.36.

To: J. Nelson who wrote (20819)	10/6/1998 12:59:00 PM
From: E. Charters	Read Replies (4) \| Respond to of 116858

Gold is rising more with respect to other currencies in the world. (Canada for instance) So we would say Gold is lowest in respect of the US dollar only. There can be an increase in the money supply without inflation for long periods before the paper worth becomes apparent. This has happened. Real wealth has increases let's say 4 times since 1967 but debt currency (not cash) has increased 1000 times in the same period. For instance Canada's national debt in that time was about 150 dollars per man woman and child, now it is perhaps 150,000. The deficit in 1995 was larger than the debt was then. There is no way that production can pay this debt as the interest dollars now equate to more than half the gross national product. You could fire the entire civil service and not have to pay out one cent in gov't services and the total debt both personal and public in Canada of about 1.13 trillion would not be paid for about 20 years! Because of taxes, the factor of wealth to buy equivalent wealth of the 1920's would have to be the inflation rate of 1.06 to the 70th, times two as taxes now eat 50% of all income just to service the debt. The inflation rate is equal to the difference between wage increases and the the actual increase in wealth. This rate must be reflected in the price of major commodities and energy. If it is not then the inflation is hidden as it is now. The reason is the money is being poured into speculation and buying businesses and bonds instead of into commodities and production. Eventually this will show up as the value of the speculation drops as it does not return wealth (earnings). Gold will eventually show its true worth when catastrophic inflation is revealed. EC<:-}