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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: bill who wrote (988)	2/19/1999 2:12:00 PM
From: .Trev	Respond to of 3558

There comes a time in the affairs of men...... The gold industry is definitely in flux right now . I suggest you spend some time reading the South African Mining thread for general comment. The whole thing appears to be being reshuffled, and it's mor that just Barrick and Placer. This morning's post has a write up involving Anglo- goldfields and Driefontain which is all part of the dance. Luck if you figure it out post it we can all use some help.

To: bill who wrote (988)	2/19/1999 2:57:00 PM
From: Enigma	Respond to of 3558

bill - I don't follow PDG - so I can't comment on its debt load - however I don't think Barrick has much debt at all - the Sutton deal will be for stock. dd

To: bill who wrote (988)	2/19/1999 4:37:00 PM
From: Kailash	Read Replies (1) \| Respond to of 3558

Deflation is also a possibility; have a look at the leader in this week's Economist magazine. Inflation turns out to be a historical anomaly, though we are used to it. Between 1666 and 1914 prices in Britain were stable with periods of modest deflation and inflation. We now have production overcapacity worldwide; this is great for consumers as we know from electronics but severe deflation will lead consumers to postpone purchases and slow down the economy - that's the theory anyway. In electronics you get used to this year's PC being better and cheaper than last years (to the point that they're now being given away for an ISP subscription), but all the new features still make them attractive (I just got one and love it). But imagine housing, cars, clothes, everything continually dropping in price - these things don't get new features all the time and it would pay to wait. Interest rates would have to follow the value of money as it drops; Japan would clearly like them to go below zero and give away money to get people to spend. Gold just might lose less value than money in a deflationary economy. Kailash