European Stars and Stripes (Newspaper) - March 11, 1990, Darmstadt, Hesse                                Page 18 a a a the stars and stripes sunday March 11,1990business news Dollar makes Gold Platinum regarded As Good bets for investors Dollar watch a mid Mcclain poor showing against Mark Hie Dollin turned in i mixed performance last week against other currencies gaining against the japanese yen and British Pound but lading against the West Zierman Mark. I he Buck s dip against the Mark was a disappointment to a number of currency dealers who had expected the Dollar to Edge higher perhaps to 1.7.1 Marks last week. Instead concerted Dollar Selling by West Germany s Bundesbank and other european Central Banks helped put a lid on the Buck in the neighbourhood of 1.70 Marks. The military Exchange rate fell a pfennig on the week to hit 1.67 Marks for a Dollar this weekend. Germany scentral Bank and the Kohl government arc committed to keeping the Dollar from gaining much ground currency traders say. The government fears a stronger Dollar would mean higher prices on . Imports and the germans think that would touch off a dangerous Izill Alionar spiral at Home. Tim Fox an economist with Midland Montagu Bank in London thinks the Bundesbank will be successful fighting future Dollar rallies. �?�1, for one Don t doubt their resolve Quot Fox said of Germany scentral Bankers. A if the Deutsche Mark looks like its about to face the serious risk of Haemorrhaging they will come in Quot to prop it up. Ian Amstad. Currency analyst with Chase investment Bank said it All adds up to the Buck trading in a relatively narrow Range Over the next few weeks. A the Deutsche Marks Down Side is limited Quot he said. He predicts the Buck will Trade Between 1.65 and 1.75 Marks Over the Short term. Fox added that he believes the germans might even hike Domestic interest Rales if necessary to attract investors to the Mark and Stop the Dollar from bolting out of that Range. Ironically in the far fast it is the Bank of Japan s reluctance to raise interest rates that s hurting the yen. On Friday the Dollar was still above 15 yen. The highest level the i a. Currency has reached in Japan in 2 / years. Amstad thinks the Buck could go up even More is. The yen. Japan s discount rate which is among the lowest of the industrialized nations currently stands at 4.25 percent. Currency traders say an increase to at least 5.25 percent is needed to take the pressure off the yen. But the Dollar s Best Chance to increase in value Over the next few Days May conic against the struggling British Pound. Amstad said. Margaret Thatcher s conservative government has come under widespread attack for planning higher tuxes recently while inflation is eating into British citizens earnings. Inflation in England is fast approaching the Rale of 9 percent a year and Domestic interest rates Are at the 15 percent level. That last number Means Consumers who want to borrow Money must pay a lot for the privilege. People who want to take out Home mortgages Are screaming. Economic analysts doubt the Thatcher government will be Able to increase rates any More in an attempt to bring inflation to a halt. Quot any move to raise those rates would be counter productive Quot Amstad said. Friday afternoon in Europe one Pound was Selling Lor $1.62, three cents less than it was Worth a week earlier. Some analysts think the found could slip As Low As $1.59 on world mar Cis in the next several Days. Late Friday in Europe the Dollar was helped briefly by news that . Non farm payrolls increased by 372,000 jobs in february the Best monthly performance in that statistical category since june 1988. But currency dealers said the big increase was due mainly to technical factors such As the return of Laid off automotive workers to the work Force rather than a real improvement in the . Economy. Done to look for the Dollar to rally on this news alone. The Star and so Alpaa by Randy Mcclaln financial writer financial advisers in Europe say one of the smartest investments . Service members can make this year is buying precious metals. Gold and Platinum arc among the Best bets to increase in value Over the next several years according to advisers who Cater to military investors and big City Banks. They suggest taking part in the expected gains by buying Mutual funds that invest in the stocks of Gold or Platinum mining companies particularly firms located in Mineral Rich South Africa. Another option is to Purchase special Gold or Platinum coins that fluctuate in value just As the underlying metals do. Quot a couple of years ago i was t interested at All in precious metals but now 1 think Gold has turned the  said financial adviser Pierre nys of Luxembourg. Nys is a Money manager who advises a number of european Banks and Independent financial planners. Many of his clients arc putting Money into Gold and Platinum. Gold has been trading in the neighbourhood of $405 per ounce in recent Days and Platinum has been fetching just Over $500 an ounce. Some analysts think Gold could hit $480 per ounce and Platinum $600 before too Long. Nys thinks Gold has an even brighter future. Quot Over the Long term Gold could hit $850 an ounce a he said. Nys said he s speaking of a five year minimum investment Quot Don t expect to get Rich quicker than that Quot he said. Most other financial advisers who sell investments to american service members also Sec Gold and Platinum on an up trend although no one else is As optimistic As nys. Chris Price a Berlin financial planner said he believes precious metals will bring investors solid returns this year Quot but not the 50 or 75 percent returns that some Are  still Price said investors should put 10 percent to 1 5 percent of their holdings in Gold and or Platinum. Barry Swanson a financial planner who works with military clients in Heidelberg. West Germany is hesitant to predict How High the metals could go. But he said investors who buy now and hold on for three to five years wont be disappointed. Political As Well As economic conditions favor increased prices in Swanson s View. He has been putting clients into precious metals for almost a year. South Africa which produces most of the world s Gold and Platinum is Likely to Benefit from increased trading opportunities with the outside world As a Reward Lor releasing Black activist Nelson Mandela from prison. Swanson said. That should Lead to greater investment in South Africa and increased demand for the metals mined from South african soil. As a result Gold and Platinum prices should Edge higher he said. Other financial planners think the decade of the 90s will be an inflationary one. And precious metals arc a traditional hedge against inflation. That should also boost Gold and Platinum higher. One word of caution. Even the most optimistic Al precious metals How High will they go a recent Survey of financial analysts shows precious metals prices Are headed up in the 1990s. Prices shown per ounce Platinum 1 Gold $600 projected v $480 projected of it. $405 present value a $508 present source Survey by Platinum Guild International inc. Values amps Susan Harris Mancial adviser Points out that precious metals Are a particularly volatile commodity. The Long term trend looks Good the experts say. But the Road to profits won t necessarily be straight up. �?o1 think Gold will creep up not shoot  said David Smith president of inter vast International. In Ter vast is a financial planning company with offices near Stuttgart West Germany and in Aviano. Italy still. Smith thinks Gold at $480 per ounce is a distinct possibility in the nol so Distant future. �?o1 Don t Sec us going  he said. Marlin Van Leven another financial planner West Germany suggests Small investors buy Gold Mutual funds. There Are Gold and Platinum coins on the Market for investors too but Van Leven thinks Mutual funds Are a much cleaner investment. Quot it you but a hard Metal Coin you be got to store it somewhere he said. A i own Gold coins but Novice investors  buy  Smith said. Quot especially overseas people Don t have safety Deposit boxes for easy storage. I her Are too Many logistical  nys added Quot owning coins is a lot like owning jewel by. You might lose them. They might get stolen. With Mutual funds All you have to keep rack oar the pieces of paper saying How Many shares you own. Two precious metals funds being touted by linuin.i.1 advisers overseas these Days arc the oppenheime Gold and special minerals fund and International investors inc. Both funds have a significant portion their Money in South african mining companies an both showed Good gains last year particularly m 1,1 third and fourth quarters. Pan am corp. Discussing Sale of Berlin routes to Lufthansa new York up a pan am corp. Said last week that it has held negotiations with Lufthansa the West German airline Over the Sale of pan am s West Berlin air corridor routes. The routes Are covered by postwar restrictions on air traffic and any Sale that allows a West German airline to Fly Over what is now East German territory would need the approval of the United states the soviet Union Britain and France the four victors in world War ii. Quot we have held preliminary conversations with Lufthansa. But no Sale is  said Peter Mchugh pan am s vice president for marketing. Quot Lufthansa contacted us in Early january to find out whether we were interested in discussing the possible Sale of these routes. The questions of terms and Price have not been  under an agreement Between the four occupying Powers. Pan am has rights to Fly through restricted air corridors Over East Germany into West berlins Tegel Airport. Lufthansa has been barred from making Ber Lin flights. British airways and air France have the same Ngi As pan am while the soviet Carrier Aeroflot Laius a East Berlin. Trans world airlines is the Only of . Carrier allowed to Fly into West Berlin. . Officials told the stars and stripes that West Berlin air routes could not happen m asl11. Civil air attaches representing each of the i Quot d would Likely have to Iron out a number of Tec mum before the transaction could go through. Still . Officials arc aware that political a. East Germany and the possibility of Reni Himm pan am Lufthansa Deal More feasible As a Cluny a a ii j i a Iii a a j i Winou Vui Iii Viv Liik his Quot the changing political environment certain pact on our position about air Access to the ii it 1 . Official in Bonn West Germany. Pan am flies to West Berlin front Bie Ivicic Quot Dorf Hamburg Hannover. Kiel.  Stuttgart As Well As from Frankfurt. I Rier s Hub in West Germany