-----Original Message-----
From: Jouhl, Paul [mailto:Paul.Jouhl@tdsecurities.com]
Sent: Tuesday, February 05, 2002 7:54 AM
Subject: FW: *** Gold/TSE GL/$US/CPI/TSE MM/CRB Bloomberg charts ***




> The purpose of this email is to address some of the questions you may
> have regarding the gold sector:
>
> *	"Gold stocks are way ahead of the gold price - what's going on?"
>
> *	"The US dollar remains strong - how can gold rally?"
>
> *	"How can gold stocks rally when inflation remains so tame?"
>
> The following charts (found in the attached Word document - sourced
> from Bloomberg) illustrate the relationship of gold stocks and bullion
> to several other important variables: $US, CRB, CPI, and TSE Metals
> and Minerals Index.
>
> We hope that you will agree with our conclusions that based on the
> response of these variables at the end of the last recession:
>
> 1) It is reasonable to see bullion lag the gold stocks in this
> economic environment (end of Fed easing).
>
> 2) Gold/gold stocks CAN rally in the face of a strong US dollar.
>
> 3) Gold/gold stocks rise on the threat of inflation - not necessarily
> the appearance of inflation itself.
>
> Chad Williams
> TD Newcrest
> 416-308-2360
>
>  <<Bloomberg_gold_charts.doc>>

 - Bloomberg_gold_charts.doc