FW: *** Gold/TSE GL/$US/CPI/TSE MM/CRB Bloomberg charts ***

-----Original Message-----
From: "lebend" <lebend@tdbank.ca<@ENRON
Sent: Wednesday, February 06, 2002 9:28 AM
To: Zufferli, John
Subject: FW: *** Gold/TSE GL/$US/CPI/TSE MM/CRB Bloomberg charts ***

-----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