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No way, no how.
The central banks are selling all want.
-----Original Message-----
From: Brian Massey <bnm03@xxxxxxx>
To: 'List, Omega' <omega-list@xxxxxxxxxx>
Date: Wednesday, July 22, 1998 2:41 PM
Subject: RE: It's free margin!
>Bruce,
>
>The reason why citizens in countries such as Sotheast Asia, Japan, China
>and particularly Russia are using gold more and more instead of dollars is
>because there's too much counterfiet US money in circulation in those
>countries. The only medium the average citizen knows has value and can
>trust is gold. It is becoming, once again, the currency of choice in these
>areas of the world, not out desire but necessity. If the world's central
>bank refuses to continue to supply this increasing demand, then gold could
>rise.
>
>B.
>
>-----Original Message-----
>From: bruceb@xxxxxxxxxxxxx [SMTP:bruceb@xxxxxxxxxxxxx]
>Sent: Wednesday, July 22, 1998 11:03 AM
>To: bmassey@xxxxxxxxxx; 'List, Omega'
>Cc: 'Chuck "put your pants back on" Cohen'
>Subject: RE: It's free margin!
>
>
>>
>> Have you noticed that the Canadian dollar continues to sink lower
>> and lower
>> against the US? This means that US dollars can buy more Canadian stuff
>> then ever. ...
>
>> This alone makes Canadian markets very attractive and the trend seems to
>> be headed even further in that direction.
>>
>
>Brian, you just answered your own question by saying "and the trend seems
>to
>be headed even further in that direction." If the US dollar continues to
>appreciate against the Canadian, then any gains you make in the stock
>market
>will be offset by the losses you incur on the exchange rate. When you bet
>on a Canadian Stock, you're also betting on their currency. If one goes up
>while the other goes down, then it's a wash. You're better off waiting
>until you think the US dollar has peaked in value Vs the Canadian, and then
>buy Canadian stocks.
>
>>
>> PS. In countries like China and Russia where the markets have
>> been severely
>> broken down, gold is becoming the currency of choice. More and
>> more people
>> in these countries are trading in paper money for grams of gold and using
>> that to buy the day to day goods they need to survive. One could
>> argue that
>> this continuing trend will lend support to gold. What do you think?
>>
>
>I highly doubt it. These countries tend to turn to US dollars as their
>medium of exchange during risky times. Gold is too difficult to use in
>terms of its quality, weight, etc. The fact that they're using more
>dollars
>is just another reason why the dollar should continue to rise.
>
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