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

To: John Hunt who wrote (34899)	6/6/1999 11:41:00 AM
From: Darth Trader	Respond to of 116764

It seems that GLDR would be a wise "no brainer" Gold Stock purchase with no debt, ....90 cents per share and a "book value" nearly three times the share price of $1 1/16. So what am I missing? Thanks for any response.

To: John Hunt who wrote (34899)	6/6/1999 2:17:00 PM
From: The Barracuda™	Read Replies (2) \| Respond to of 116764

Does anyone see a "topping pattern" in the US dollar? If Kosovo had been the reason for a rise in the US Dollar, perhaps this "peace agreement" will be the spark for the US $'s decline. The CRB broke out to the upside Friday, it looks like a commodity bull mrkt has started. Gold seems to be trading in a mirror image of the US $. So.......

To: John Hunt who wrote (34899)	6/6/1999 5:22:00 PM
From: Alex	Read Replies (1) \| Respond to of 116764

6/06/99 - Gold woe a deflation warning? <Picture> TORONTO, Jun 06, 1999 (The Canadian Press via COMTEX) -- Gold"s fall from grace has led many observers to conclude that the metal has become irrelevant from a monetary perspective, but some big-picture analysts insist it still has an uncanny ability to telegraph the direction of overall prices. What"s more, some say gold"s technical breakdown is flashing messages of serious financial trouble ahead. Their concerns include a coming faceoff with deflation -- despite the market"s current preoccupation with inflation fears -- and the painful popping of a bubble in the financial sector. Once you smooth out the short-term twists and turns on the charts, gold has been ""the best barometer of inflation,"" says Kiril Sokoloff, an economist and longtime gold watcher who counts hedge funds among his clients. Movements in the price of bullion are crucial because they tend to lead commodities in general and therefore inflation and interest rates, explains Sokoloff, who runs a private forecasting firm called 13D Research Inc. out of Sun Valley, Idaho. ""It looks to me that there"s a pretty good chance that gold is breaking down here,"" he says. ""I think it"s signalling deflation."" Bullion has been on a steady slide since peaking just above $415 US an ounce in early 1996. It has bounced at various levels of technical support in the course of its decline before resuming its downward course. After plunging below $300 US in late 1998, it has stuck largely to a range of $275 to $315. Inflation concerns, especially in the United States, are now on the rise but gold is not paying any attention; in fact, it is breaking out on the downside and hitting new 20-year lows. The $270 US mark was the recent floor for bullion but the metal crashed through it this week. ""The $270 level is extremely important . . . a powerful symbol"" for commodity prices and inflation, says Sokoloff. He figures there is no real technical support for gold until it reaches about $200. By his account, the real danger is that if the U.S. Federal Reserve panics about a short-term blip in inflation and raises interest rates, there could be trouble for financial asset prices. ""I think it would be very, very dangerous."" Robert Hoye, a Vancouver-based financial analyst with Quantum Research, also sees danger, and gold"s behaviour plays a big part. ""The message gold is giving now is that we are in a financial bubble,"" he cautions, adding that gold in the past has tended to break down just before bubbles burst. ""After a bubble, there has always been a huge financial crisis."" However, David Rosenberg, a senior economist with Nesbitt Burns, plays down this analysis. He says gold has a 70 per cent success rate in predicting the direction of overall prices, but ""I think right now this is one of the other 30 per cent of the time."" There are too many other indicators pointing to inflation to believe gold"s deflationary message, Rosenberg reasons. ""I think gold is operating strictly on its own weak supply fundamentals,"" including central bank selling. Hoye and Sokoloff counter that the broader trends in the price of gold have consistently overridden supply pressures. Sokoloff is not convinced deflation is baked into the financial pie and says gold might yet recover from current price levels. But a true breakdown signals a deflationary threat and the price of gold can be ignored only at our collective peril, he warns. ""The price action will tell the story."" Copyright (c) 1999 The Canadian Press (CP), All rights reserved. -0- By David Thomas