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 : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: J.E.Currie who wrote (8718)	12/3/1998 7:30:00 PM
From: Zeev Hed	Respond to of 14226

Jim, sorry, but as venerable as Verneroso is, I do not agree with his bullish stance on gold. He is forgetting two major points, Asia (including oil rich Arab countries) are going to be under the gun of deflationary pressures for at least another year, if not more, thus their demand for gold will be at best marginal, but not even approach the lofty levels of early 1997. The second miss, is the fact that all countries in the world are now going to have a third main currency (paying interest) in which to hold their reserves, the EU. Thus CB are not going to hold more then necessary sterile gold, they will convert more gold to EU based government backed debentures. I would not be surprised if the EU debenture markets reached 0.5 to 1 trillion dollar in 10 years, calculate how much of the current 20,000 tonnes of gold in CB vault these funds will replace. I think that if the recent financial calamity in the east did not bring about a major rally in gold, nothing will. Yet if you can extract gold for less then $100/oz, you need not worry, you'll supplant the poor slobs with costs in the $250/oz range. Zeev