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

To: Zardoz who wrote (20925)	10/7/1998 7:37:00 AM
From: David R. Schaller	Read Replies (2) \| Respond to of 116845

Hutch: >And this is why the huge rise in the YEN of today, is having very little effect on gold, as the US Dollar drops. When near Oct 16, when the US dollar starts to reappreciate, the POG will slide very fast. And that is when I'll be in the markets {short}.< Dollar is down 5yen & gold up $5.50. About $1/yen. Is this "little effect"? Dave

To: Zardoz who wrote (20925)	10/7/1998 7:51:00 AM
From: Mark Bartlett	Read Replies (2) \| Respond to of 116845

Hutch, << How can a commodity that the PDG CEO says cost $170 oz to produce, could be worth $300/oz? Fundamentally it aint worth i>> Well ... I would bet Coke cost less than 2 cents/bottle to produce ... and Coke does not seem to have trouble getting 1.00 for it. IMO you view the world too much from the perspective of the a first-world country. There is still a huge part of the world's population that hold gold dearly. The fact is Hutch, even the average person still senses some degree of comfort knowing that in tough times they can rely on something real - not on a piece of paper. It is fine for you to talk about all of the hedging ... the deltas and the gammas - but to most people that mean nothing. As far as I am concerned - as long as only a few countries control the currency's of the world, there will never be any type of real stability. It relegates most others to some sort of third world status. Look at what the currency traders did in some of the Asian countries .... that was ruinous for those people. There must be an anchor in the monetary system that all can moor their boats to - and it can not be another currency. There has to be a common anchor for all ... and gold is the best choice, otherwise currency turmoil and world instability will be with us for a long time. MB

To: Zardoz who wrote (20925)	10/7/1998 10:59:00 AM
From: E. Charters	Read Replies (1) \| Respond to of 116845

Well think again. The money supply has risen out of all proportion to the worth of production and intellectual property wealth in the last 20 years. It is a gigantic inflated balloon, yet it is not being used to produce with, just to acquire existing assets and to speculate in the resale value of securities. But the securities' underlying business is not that good to justify the p/e ratios. Except in mining where traditionally low, it is now abysmally low. That is because the metals trade is a long term and primary cycle whose absence is not felt for a significant fraction of a generation. But it is the only way some countries like Canada get significant foreign exchange. Gold cannot be held out of whack for long. The Asian derivatives debtors are defaulting and that could collapse derivatives markets and free up gold from its major controlling influence. Gold in real terms should be many times it present price. To buy a commodity today the price you pay is twice what you would pay in real terms because of taxes. Add to that the 6% inflation for 70 years and you have a monstrous price index increase only partially offset by the large wage increases. Nontheless inflation will always outstrip wages. The large increase in the money supply of the last twenty years is 90% inflation. It is not accompanied by attendant huge price increases partially because of the flood of cheap Asian production and the use of most of the money in buying financial instruments. This cycle is ending and the crunch will come. The spectre of hyperinflation is everpresent and could hit at any time. =================================================