Castlégar News _J0~ory 25, 1985 > BUSINESS ‘OUT OF FASHION" Gold loses lustre | By EUGENE ELLMEN The Canadian The hoarders, traders and buyers who rocked the financial world five years ago by driving the price of gold to an all-time high have fallen on hard times. Their precious metal has plunged to about one-third of its record value. It was five years ago — on Monday, Jan. 21, 1980 — that gold hit its peak of $850 U.S. an ounce at the big trading houses in London. In Zurich, the world’s largest gold trading centre, gold was fixed at $845. Last Friday gold closed at $307.25 in London and $307.75 at Zurich. Earlier this month is dipped below the psychological barrier of $300 to close at $296.25. The world is a much different place than it was five years ago and the price of gold has acted as a barometer of that change. And while Canadian investors and gold mines cry in their bullion about the falling price of the commodity, economic forecasters and gold analysts say it could be years before gold regains its lustre. OUT OF FASHION “Gold is out of fashion,” said Keith Smith, managing director of Mocatto and Goldsmid, one of five London bullion houses that fix the price of gold daily. Gold thrives in a high-inflation, uncertain economy and, with current inflation at a mere four per cent, gold buyers are putting their money into bonds, stocks and other interest generating investments. “You don't make any interest on gold,” said Tom McCormack, with Data R Canada in Toronto. “The only way you make money on gold is if the price goes up.” The price goes up when consumers and investors want protection against rising inflation. When big money traders are worried about inflation eroding the value of their stocks, bonds or currencies, they dump those investments and put their money in gold. Smaller investors follow the lead and tell their banks or brokers to buy gold coins, mutual funds or gold mining shares. The major news events of early 1980 show why gold traded violently five years ago. The Soviet Union had invaded Afghanistan, Iran was holding U.S. hostages, Yugoslav president Tito was ill, oil prices were rising, a trade war was Srevstoning and the world economy was generally on shaky ground. THINGS IMPROVED In 1984, inflation tapered off to four per cent, some members of the OPEC cartel dropped their oil prices, interest rates fell and the U.S. dollar showed surprising strength. “In 1980 it was clear the U.S. economy was out of control in terms of prices,” said Jan van Vliet, senior economist with Chase Econometrics, an economic forecast- ing firm in Toronto. “From all perspectives on the inflation front everything is now under control.” Van Vliet said Chase is forecasting inflation will stay at between 4 and five per cent for the next four years. McCormack concurred, saying his firm is putting inflation at less than five per cent for the next several years. All of this spells bad news for the price of gold. McCormack said even if the U.S. economy slows enough to reduce the U.S. dollar, gold won't necessarily go up in price. It typically increases in value when the U.S. dollar falls because big traders will dump dollars and put their money in gold. SWITCH CURRENCIES “But they might feel a little bit better about the Deutschmark or British pound or the Canadian dollar, for that matter,” he said, indicating money traders may simply switch to other currencies rather than to gold. Jane Pizzo, a trader with Deak-Perera Canada Inc. of Toronto, said a slight firming in gold prices in the last two weeks isn't significant. She said there has been a slight upturn in demand. David James, a metals analyst with Richardson Green- shields of Canada Ine. of Winnipeg, noted there have recently been record sales of South African Krugerrand gold coins in Japan. In addition, there have been heavy sales of crude gold jewelry in the Far East because this is the lucky month of the Chinese calendar in which to get married. He said gold could still drop to $275 an ounce, however. During 1985, James said the best gold is likely to do is to increase between 15 and 20 per cent. That's only if the U.S. dollar declines against European currencies. FIRA GIVEN A_'BUM RAP’ By KEN SMITH Economics Writer FIRA — The Foreign Investment Review Agency — is going the way of the dinosaur, to be replaced by something called Investment Canada. This verbal gear-shifting is supposed to show would-be foreign investors, their wallets bulging with bucks, that Canada once again is a safe and profitable haven for their future. FIRA, critics said, was a real downer for people who wanted to sock some money away in Canada's resources, manufacturing or services. It involved them in reams of paperwork, with no guarantee that their efforts would be successful, and depended on the whim of some Ottawa bureaucrat. It was a bum rap, of course, because in fact FIRA approved the vast majority of proposed foreign investment and takeovers within Canada. Nevertheless, as Prime Minister Brian Mulroney and Finance Minister Michael Wilson have pointed out repeatedly, the existence of FIRA was seen as a suggestion that Canada did not welcome foreign investment. LOOK FOR MORE So Mulroney's new government hopes the name change and encouraging noises will attract more of that foreign money into the country. The reason this investment is wanted is simple. Those bucks, whether they come from the United States, Europe, Arab countries or — increasingly — Japan, translate promptly into new factories and offices. And that means jobs for Canadians. With last year gi 1g 11.3 per cent, or 1.3 million Canadians, anything that will improve the overall picture is going to be welcome. But is a name change going to be enough to attract foreign currencies into new or expanded Canadian operations? Even if it does, are the benefits worth the long-term risk of draining off Canada's wealth? The answer to the first question is that, so far at least, there has been no lineup of foreigners pounding on customs counters demanding that their dollars, marks, pounds of yen be allowed into Canada. * In fact, the people with excess money to spread around seem to be more interested in the so-called developing countries. COMPETITION KEEN This shouldn't be surprising. Canada has what is known as a mature economy, meaning that financial returns should be generally safe and stable — but not spectacular. Lots of countries offer similar opportunities, so the competition for those foreign funds seeking safety is fierce. And if the investor is looking for a larger return, countries such as those in the Pacific rim or South America may seem a better flutter. What about foreign investment draining off Canada's wealth: Economic nationalists have pushed this point for more than a century. The former Liberal government in Ottawa seemed to buy it, at least in part, as shown by its introduction of FIRA and the National Energy Program. That argument will carry on forever, nothing. But it’s fair to note that Canada depends on international trade for a lot of its wealth. Increasingly, the international world depends on the interchange of investment capital. Can Canada afford to be left behind in this race? settling Tories back mortgage plan OTTAWA (CP) — Mort- gage-backed securities have received the official blessing of the Conservative govern. ment, but it will probably be months before any are ac tually sold. Cabinet has set Feb. 1 as the date for a section of the National Housing Act author- izing the new type of secur. ities to become law. However, John Sawyer of Canada Mortgage and Hous- ing Corp. says it could be next fall before all the details of the program are worked out and the first securities are offered for sale. “It’s a fairly complex pro- gram,” he said in an inter- view Tuesday. Mortgage-backed secur- ities will be roughly similar CLEAN COTTON RAGS WANTED Castlegar News 197 Columbia Ave. HOMEGOODS FURNITURE WAREHOUSE Tues. - Sat., 9:30 - 5:30 China Creek ‘Drive a Little to Save a Lot to bonds issued by private corporations, except any money raised will be invested only in mortgages, payments will be made to investors monthly instead of once or twice a year, and the secur- ities will be guaranteed by Ottawa. A large portion of the mortgage money raised in the United States is raised through mortgage-backed securities, and the previous Liberal government osed the same basic kind of arrangements for Canada in its budget last February. Presumably, Canadian in- vestment houses will be the first to offer mortgage-based securities for sale, and in- stitutions will be among the first buyers. Sawyer said the securities now sold in the United States have a minimum denomin- ation of $25,000, but the average denomination sold is for fast cutting and easy main- tenance. Al Stihl saw chains feature the Oilmatic Drive link which channels oil to the critical friction and wear points. Stihl, the saw chain for pros that non-pros appreciate. CHAIN SPECIAL $ 1 . Per inch Buy now and save! Columbia Saw & Service 199 Columbia Ave., Castlegar In the CosNews Bidg. 365-2710 YOUR SATISFACTION IS OUR MAIN CONCERN. 2 CONVENIENT LOCATIONS TO SERVE YOU * Castleaird Plaza * Downtown Castleaird Plaza Store Open for Your Shopping Convenience Until 9 p.m. Thursdays and Fridays. Prices effective until Saturday, January 26 SUPER 99° SALE regular ground beef "the Big Buy g 4G lb. @ this week!" 10 Ib. pkgs. & over 12218 picnic shoulder Government inspected pork © Gainers qe smoked ¢ whole ng 218 breakfast sausage 718 D9 head lettuce California grown *® Canada no. | ro 1.09... regular wieners Fletcher's 480 g pkg. ....cccccccees red ripe tomatoes Ibs. @ Qu white sugar imported * Canada no. 1 ro 1.09... Tate ranulated Ibs. @ 2kg bag............... 8 tomato soup Heinz * condensed incy 284 mi tins ..... 926 L Wiscscccevcevieene ice creamery cream butter — 1 4 y = 1 y 4 * assorted limit 3 per varieties customer purchase 8 eee eee errr: a 454 g pkg. ....---- a WE RESERVE THE RIGHT TO LIMIT QUANTITIES. — ELECTRIC POWER SHOVEL my tes ai Powered Available at Sale Prices SNOWBLOWER REPAIRS All Makes & models with B&S and Tecumseh Engines HENNE'S MARINA Castlegar 365-3219 Two tires, pol fibreglass belted. 676-13ms on rims. Used on a limited basis. Asking $50 each. Phone 368, 2833. Zi MARTIN'S TV. 965-5349. 10% volt on all parts and labour AUCTION HOUSE New & Used Furniture for Sale Phone 399-4793 NOW TAKING REGISTRATION for the next session. Evening and day classes. Children's classes Saturday morning. Certified teacher. R & R Ceramics. Phone 365-3505 7/2 SALE PRICES wow 144 OFF ALL PARTS q 72 STATIONERY SUPPLIES PHOTOCOPYING WEDDING STATIONERY GENERAL PRINTING SeKel Print M2. 623 Columbia Avenue 365-6385 ST. DAVID'S THRIFT SHOP January Clearance Sale starts January 8. on most coats and jockets, slacks etc. Bargains tor all 73 Two-Gell PAILS ONLY *1.50 EACH Heavy duty all-purpose plastic pails with tight-fitting covers and handles Need cleaning. $1.50 each CASTLEGAR NEWS 197 Columbia Ave. Castlegar 920 Columbia Ave. (Across trom Old Arena) PENDEE Whiteware now, toking class registrations. Call 2863 TAKING REGISTRATION i ceramic classes in Robson. 365 6609 WATERWORLD ENTERPRISES. Waterbeds galore! Unbeatab! prices! 112-367-7608. in FOR SALE: Four G-60x15 Super charger tires with white spoke rims. $1 Phone 365-7497 tin 97 CLASSIFIED Rates First 10 Words $3.15 Additional Words yg 2 Insertions for ion: be i Sec Reduced ates for iso Avail legal Ads Word ads: 20¢ per word tor One insertion; 15¢ per word for subsequent consecutive insertions. Legal boxed ods 646 per agate line for one in. sertion; 48€ per agote line tor subsequent consecutive inser tions Payment Policy Poyment may be made by cash. cheque or Viso and MasterCard credit cards. It is 3/5 SPECIALS BEEF & PORK ‘Quality Guaranteed Sides of Lean pork $1.09 Ib. caw Beef — A-1 Government inspected siwes $1.55. caw ng and tronmuing wil mnerouse price pet -) TRIPLE D MEATS Canyon, B.C. Ph. 428-5613 RECONDITIONED FURNITURE FOR SALE. With allowances for trade-in furniture at Spectrum Vinyl Repair, Phone 365-8336, 9 hurs., Fri., Sat. Jan. 24-26 Armstrong Mild Yellow CHEESE $989 Armstrong MOZZARELLA CHEESE CONSIGN your saleable fur. niture through Spectrum Vinyl Repoir & Upholstery. Phone 365 90.m. to 5 p.m. 5 BEDROOM SUITE, natural colour, ¢/w mattress, boxspring. Phone 365-5506. USED GUNS bought and sold Cash or trade. Wises Hardware. Rossland. 112-362-5171. tin/93 COLECO Vision fridges. Like 1 CROSSROADS JANITOR SERVICE ‘We Don't Sweep it Under the Rug! COMMERCIAL * RESIDENTIAL 3 with 8 cor $300. 365. 3/ not to send cash through the mail. Clossitied Ads may be charged, but o $1 billing cherge wil be mede # the ad is not paid tor doys after it first cepeers. (This $1 charge does NOT op. ply to Visa and MasterCard charges.) =sa= Action Ade Beading WEDNESDAY CASNEWS 12 Noon Tuesday SUNDAY CASNEWS 11 a.m. Friday 10 a.m. Friday Order by Mail Print your Action Ad on o seporate piece of paper ond mail to Action Ads Box 3007 CASTLEGAR, B.C VIN 3H4 The Costlegar News reserves the right to classify ods under appropriate headings and to determine page location Human Rights Act All advertisements such os Help Wanted must comply British Columbia state or imply © preference limitation, or specification, on the basis of an applicont’s race, religion, colour, maritat stotus, ancestry. place of origin, age, sex (unless the matter relates to the main tenance of public decency AND prior approval has been obt STEREO SYSTEM Ideal tor isco or commercial use Sacrifice price. 365-5491 Vs TRS-80 Color computer ined a programs. 365-3: 100% NATURAL VITAMINS only ot MOTHER NATURE'S PANTRY RED MOUNTAIN prints by Mol Gagnon now available ct Kel Print 3/6 5.TON MOBILE CRANE on rubber 228 Hibock bucket seats, black with grey cloth stripe $150 pair 112.987.4185, 119/99 Aluminum Sheets 24%" x 36 1340 24 25 or More 75¢ Each CASTLEGAR NEWS 197 Columbia Avenue Castlegar ACCOUNTING For Small Businesses Phone Bill Waldie 2 Your Place Or Mine SNOW THROWERS ” SNOW TRAILS) Saas 502-1 ry ons. ’ Senco 693-2382 For Better or For Worse® by Lynn Johnston FREE ESTIMATES Call George Ross Shop Manager MALONEY’S AUTO BODY — 365-2155 __UMDERS20— VIKING RuOTHES DRYER in $20. Phone 365. 37 three issues MALE BOXER. Phone 35582, WILL HAUL / Away “livestock cor casses. Phone 357-9984 atter 6 p.m. tin/29 DOGS BOARDED. Aico Kennels Salmo. Phone 357-9984 eves tin, 49 FOURTH NIGHT On us when you stay at the Blue Boy Motor Hotel. Rooms ree airport Shomle, 112-321-6611 SE DIET CENTER loss franchi with 1800 locations and more opening daily. We ore seekin woul cesstul and rewardir Call 112-(403)-283- formation. Minimum investment $20,000. 7 THE GROWTH CENTRE of the West Kootenay, Castlegar, in inquiries | regarding ness opportuni industrial FORTABLE top load dishwasher $80. 0.8.0. 365. a7 10 CU 7 FRIDGE, in con, dition, $115. 365-5338 wed RENT THIS SPACE 365-5210 voriable speed laypen, walker Sater te. Jolly jumper pack 38-7668, 3/7 copytron Copier Systems CALL DAVE PLANT Residence 365-2818 or 112-800-642-1234 AUCTION! Russell Auction House, Hi 3A Thrums. Sunday, F 1 p.m. shor = A viewing." St % — jon, 460 C jortation commissioned sales transportation of la Pobets box 5, White Rock Bc V4B 42 PROVINCE-WIDE CLASSIFIED for detoils! Clessified Ads 365-2212 1980 + WAmEY t DAVIDSON FLH $6995. 1976 Harley-Davidson xin $3995, yeor warranty nia sidecor — $1795. Syd's Cycle Lid. 112-364-1366. Trail, B.C 5543 CUSTOM FISHING ROD building jhway 112-533-2981 Whobnelers to the public mai orders welcome KENMORE Mork IV stove, used 6 months. Excellent condition $500. 365-5071 3/7 QUALITY SATELLITE SYSTEMS Excellent um. VANCOUVER ISLAND GM MARRIAGE. What does ‘it mean requi honest aggressive salesperson but not necessary. Appi 55, The Gazette, Box a8, Hardy, 8.C. VON 21 Port SCHOOL STnCT 50 ore CHARLOTTE) te is Masset for the period from 1985. 02-18 to 1985-06-28. This is a temporary position. Teach with | stron social studi are invited plications to Mr per, Superinten. dent of Schools, School District Bo» ju B.C., VOT 150 by 1985-02-01 YOUNG WOMEN'S CLOTHING store chain tor sa Valley. Owner FLORIST BUSINESS. excellent on. gross. Located in mall Established 10 years. Phone 112 485-545! after 6 p.m. Flower Pot Florist, 71 Iberni Street Powell River, B.C 7 FOR SALE: 24-hour Answering Service in the heart of Northeast country. Four yeor old business, established clientele For more information, coll 112 788-3252. Terms available 7 NATURAL iO BULK FOOD STORE. Excellent plaza location Crossroads o} Street, Castlegar. B.C. VIN amo. PENTICTON SCHOOL OF HAIR DRESSING now take to you? ship? Security? Sharing? if you'd like to meet someone nice to marry, we'll help. Wri 7954, Sa: skatoon S7K 4R6. BUD HAYNES licensed Gun Auc tioneer, next auction Februar 23. Consign now new or old. handguns, shotguns, rifles Phone 112-(403)-347-5855. Box 456, Red Deer, Alberto. TaN Ss 7 GARDENING STARTS NOW. in joor or greenhouse. Metal Holides & HPS. We have over oducts at low pri 2.00 for catalog: inquiries welco Western Water Farms inc Seymour Street, Vancouver. V6B 3N9. 112-682-6636. 7 PLEX includes land and parking lot. High in. come turnkey operation Bowling lanes, 60 seat licenced lou es area. Phone Bryon ot Bi Pio Sosasz3. 7 SKI FROM YOUR DOORSTEP! On hill five doy packages from: Big White $147” Red Mountain $130 Selkirk Snowcats, $1,030; 108 x country $82. Coll toll tree 112, 800-663-904 PLANNING A TRIP to Australia/New Zealand? Now you can call free to ANZA Travel the Down-Under experts Lowest fares, best planned trip. 112-800-972-6928. INCOME TAX FOR FARMERS FARM INCOME AND EXPENSES @ Chortered Ac mer exploins everything tor reporting 1984 in d expenses. Easy to ighly recommended jul and interesting book now used in seven provin ces send $22.50 to Eric Farden Box 3 Sosk for February 4 Spaces ore {i mation coll 112-493-2747 Main Street, Penticton, B.C. V2A 581. Closed December 24th to 28th 7 READERS of the Castlegar News Community Newspapers Assn are offered the most com prehensive and cost-efficient advertising progrom ever 109 per week we can place your 25-word blanket clossitied od in more than 700,000 homes Your Action Ad will appeor in neorly cy community spopers with more thon 1.5 million readers! Coll our Action Ad number 365-2212. tor details tin, 87 Opening Seoson Special 10% DAY OLD CNCKS — Hatchery Box 2560 Seimon Arm, B.C. Vor 210 Ph, 692-4763 7:00 a.m. - 5:00 p.m Our Action Ad Phone Number is 365-2212 in Glenmerry, Trait 08 7336 DELL A.M. FORD “YOU DESERVE THE BEST AND YOU GET IT AT A.M. FORD **Your Ford Country Headquarters’ 364-0202 4 DENNIS: SOM 1WO. 7 GET SPICEY! Meet o new secret friend by mail. Penpal club tor adults. free information, to: EXCHANGE, Box 1577, Qualicum, B.C., VOR’ 270. “a 24-PAD MOBILE HOME PARK Undergrpund wiring, town water, sewer. Fully occupied Long ‘term tenants Also lots trom jew Hazelton, B.C fully turnished $68,000 property, B.C. or Alberta. 365. 2600 / REGISTERED TEXAS LONGHOR Bulls, bred cows, heifers tor rivate herd in B.C For more information 112-546- 8971. Carterland and Cattle Co. Armstrong, B.C. VOE 180. 7 1980 WHITE WESTERN-STAR. 1979 Peerless 25-ton trailer yavel or | jours and mi dition. Phone 112-344-2138. 1985 HARLEY-DAVIDSON 'S and Yamohas in stock. For the best deals in B.C 0 364 1366. Syd's Cycle Ltd., Trail, B.C. O.L. 5543. U GET MORE MONEY FOR YOUR SCRAP. We're buying aluminum. tor Toll tree 112 GOOD LIFE GREENHOUSE 63°x76" $495. Write or phone for tree brochure Cc GREENHOUSE BUILDERS. 7425 jediey Avenue, Burnaby, B.C VSE QR). 112-433-2919 7 PROSPEROUS TAXI BUSINESS Vancouver Island. Two cars complete with licences, radios. meters. 24 hour dispatch service Pleose contact G. Blackburn. 112-468-7346. 7 paces on ing any a tEED png as ver Toles ot 12. oo Sei sa Peter Mipten Somes HOUSEKEEPING UNITS. Fully furnished including _ minor housekeeping, linen, tow etc., Close to pt a groonse, porking , ideal om A ce to town, off-street tor studen- . One and two iments osarting or well cored tor FOR RENT soaneds aan foo ge Street. $325 per month, in- cludes gas. 365-3113 days, 365-5847 eves. BRIGHT AND SPACIOUS 2 bedroom apartment. i stove included. Phone R days 365-2111, eves, 365-3520. tins ROBSON, older 3 bedroom home, next to school. Private yord with ruit trees. 365-2296 SUITE, one bedroom Tumished. Clean, utilities inch 6571. Private entrance. AVAWABLE ‘Dec. 2128, HOUSE, 2 bedrooms, in Robson. iveone. Available now 365-3265. EZ) HEATED furnished one oom wite. Utilities included . Leundey City CENTRE MOTEL yet One and two bedrooms $195/month and up. 368-4281, 352-7774. bedrooms, in Je Heat and light included. 495. 4208 (collect). MOBILE HOME, two Nice location between Castiegor FA Nelson. Rent reduced ‘Bs, FOR RENT Two or three bedroom, semi. furnished mobile homes. Apply at No. 20 Ceder Crest or or 365-2915 (after 6). BASEMENT SUITE two edrooms, with fireploce Housekeeping units, furnished or unturnished. Heat included, private entrances. Phone 365. 3518. 1/2 FURNISHED DUPLEX, two LARGE 3 bedroom mobile home with porch, in Robson. Gos heat available Feb. 1. 365-3155. tin 3 SUITE, 2 bedrooms, sem: furnished, utilities included Private ‘entrance. 550-7th Avenue. 112-352-3290. 72 HOUSE, one bedroom in Blueberry. Phone 365-5678 FAMILY HOME 3 bedrooms Phone 365.6924 6 area. prepared to: Persons interested traditional contact us Contect — Resources 930 Trail, B.C. work cooperatively as part of a treatment team. deal with aggresive outbursts teach or model age appropriate lite and social skills provide emotional support to a very needy’ youngster in fostering who are perhaps litestyles, or with varied lite experiences are encouraged to Interested? Want more intormotion? Michoel Eso Social Worker Ministry of Human lossiond Avenue VIR SNS Phone — 368-3371 Urgently Required: individual(s) or couples interested in contracting with us to provide care for a behaviorally disturbed 16 year old boy This child has been receiving residential treatment in the Lower Mainland for the past 18 months, and is now ready for a return to the West Kootenay We are looking for a family or individuals with no younger children who are involved in “non We are prepared to contract for a monthly “fee for service’ of up to $1200 plus a generous maintenance allowance for the care of this child You can make a difference