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the oxamlnor Friday Fob 1a 1919 250 oz sparks speculation By ARL DeGURSE Of The Examiner Gold yellow nonrusting metal its been the symbol of wealth for all civilizations for which there are records No other possession has been so sought after so fought over so zealously guarded Theres not much of it either if all the gold mined in the past four centuries was gathered together it would make shiny 50foot cube in the early 1970s gold was selling in the United States for $36 an ounce Last week it hit record high of $250 an ounce in London and Zurich Nobody is more surprised by the dramatic increase than jewellers people who handle the precious metal every day They say the higher gold prices rise the more people want to buy its paradoxical says Bill Le Boeuf of Le Boeuf Jewellers in Barrie People should be buying when the price is low but they dont When the price rises everybody wants some everybody jumps on the band wagon its chaotic says Michael Buying gold locally easy Youve watched the price of gold skyrocketing in recent years and decided as time to get piece of the action You dont have to strap on packsack load up burro and head for the Yukon The dense yellow metal is for sale in Barrie probably at the bank you deal With Ask the teller and shell get an order form The bank will call Toronto supplier and find out what the present selling price of gold is The selling price of gold is usually in American funds so youll have to pay an exchange rate For example if gold is selling for $250 an ounce it will cost about $300 in Canadian funds After you fill out the order form and pay the going rate the teller will give you receipt saying you own an ounce of gold The bank then orders your resplendent treasure from the supplier Itll take about week to arrive Brinks security truck delivers your gold from Toronto the sunk and youll be contacted Youll probably be surprised when you first see your $100 purchase An ounce of gold is two inches long one inch Witlt and about the thickness of nickel You can take the expensive wafer with you are leave it in bank security box which is what tnost customers do Then you wait if the price of gold rises and you decide to cash in on your investment the bank will buy it back from you at the new rate if the price plummets drastically thoughyoure left with shiny piece of metal Wider proprieter of Webbs Jewellery in Barrie in the past few years the price of gold has been going up btit sales have been going up as well You figure it out Jewellers dont like the con tinually fluctuating price of gold They would prefer stable market where costs re main constant The little buys lose money quite frequently says Wider bought merchandise last August and when got it in November it was as much as 30 per cent higher The selling price of gold is not the price paid by jewellers The gold they buy has had costs such as currency exchanges and refining expenses added on Barrie jewellers may pay about $330 for an ounce of gold that has market price of $250 When the price rises the change is usually reflected in the retail costs of jewelry such as rings watches and necklaces if we have an item and the price of gold rises its going to cost us more to replace it says Le Bouef lie Bouef says the rising price of gold is largely caused by the declining value of the in British Columbia Lending pa VANtlHVEit ttiI Lend ing money in British olumbia is paying off for the Federal Business Development Bank Fill it it also leads the country in the number of borrowers who have paid their Fiillit loans be fore they are due says bank president tiny iavigucur The Fliltii is federal trown corporation whose basic tunc tion is to make available tcrm loans venture capital and give management counselling to persons who wish to set tip new business either in manufacturing or in service industry and who cant get loan from one of the private banks in many cases the FBI bor rowers have progressth to the point here they are accepted as good credit risks for loans from conventional iiYitlt banks possibly the banks that originally turned them down for loans itt businessmen currently repay $4 million month it Fill compared with $3 mil lion month in intario in tintario with population of iiiiilioii the Fiiili has $400 million in loans com milled in it with popur iation of 23 million there 1S $400 million committed in loans RATE Slii The Fiiims interest rate for loans up to 330000 is 12 per cent and 12 per cent for loans exceeding 350000 The repay iiiciit period may range from two to 13 years Although the Fitiiii made profit of $173 million last year laivigucur said ur object is not to make profit btit to help small and iiiHlilliilSlZHl busi ncsscs ideally we should break even financially tine of the Fiiilils problems is making entreixneurs aware of its cxistcncc and the services It offers We would like to launch campaign to accentuate our services to let businessmen know what we have to offer said Lay igticur About 80 per cent of our loans are made to export ori cntcd businesses believe aii ada is now In an excellent posi tion to increase her exports now that the anadian dollar is so low on world money markets Imported cars counting on dollar rebounding to maintain market ANtiii£R ii Deal ers selling imported cars are counting on rebound of the anadian dollar to help them maintain their share of the market against new domestic competition However at least one major import dealer in Vancouver would rather switch than fight Henning itrasso Datsun dealer for 11 years last week turned his back on the Japanese compacts and signed with Lin colnlercury one of the Ford Motor two franchise lines Brasso cited price increases caused by inflation and by the weakness of the anadian doi iar relative to the Japanese yen as the main reason for his declining sales and subsequent switch We were doing 2000 cars year at our peak he said Last year we did 400 What dealers are ex periencing is that number of them who made large amounts of money in the early going and made it easily are not able to adapt to the hard going said lerry Kramer general sales manager of Nissan Au tomobilc which distributes Datsun in anada They are not willing to face the hard times that have been regular for domestic dealers import dealers in the early 1970s captured the public imagination and sales with low priced compacts that were cheaper to run than the large North American models lilliTlllt iakiiig tip to0 per cent of the national market imports did even better iii llritish iumbia where they accounted for about hall of new car mar ket lhough slow to respond Ford General Motors and hryslcr parried with small economy cars lhat com petition combian with rising import prices brought on by the falling ianatlian dollar has squeezed the import dealers ihcir share of the market last year dropped to per cent na tionally and to 30 per cent in it Kramer said liatsuns peak year was 1071 when almost 11 000 cars and trucks were sold in Nissans Pacific region lliat ligure dropped to 7000 last year but Kramer said part of the decline was due to iat suns attempt over the years to strengthen its national dealer network by shipping cars cast which might have been sold in lie said liatsuns 41 Patillfl region dealers down from high of So hope to sell about lL000 units this year and we dont all read it as doom and gloom Local photographer wins awards Peter Northcott of Procolor Photographic Sor Vlces 27 Dunlop St was given two awards of merit for portraits by the Professional Photographers of Ontario Monday Northcott said about 30 phomraphs were entered in tin ex hibit The winner St Catharines photographer scored only three points higher in the judging than Northcotts two portraits he said The por traits wore of Karon Ramshaw of Brocebridge and Janet Nubm of Barrie right ys off dollar and bi traders who la withthe marEet it seems to be big game and not good game for anybody he says Le Bouef says the value of gold may reach point where it prices itself off the market What goes up must come down You cant have inflation soaring like this without some pretty disastrous conse quences Eventually the bubble is gomg to burst He says silver or copper may prove to be better investments than gold because prices havent increased as rapidly But then its all gamble The breakdown on the banks ioaiis to it businesses is about per cent in the manu facturing sector and 23 per cent in service industries The manufacturing sector in cludes the forest products in lustry machinery manufac hiring and light fabrication We nurse ailing businesses as much as possible in some cases wt send in one of our business counsellors usually retired businessman with iiiticli experience to assess the prob lems and suggest way to change the ink from red to black on the balance sheet lavigticursaid There are H730 small and nic tllliiilStlttl businesses in ii with total of Sii0ttioooo lior rowed from the bank and in the Yukon the bank has loaned 310000in to iifi small enter prises Gold the rush may be on again Anne Bradley of Johnson Matthey and Mallory Ltd in Toronto amid $6 million worth of gold at Dollars sense liy ltllll ALEXANDER Dear Sir in November purchased 810000 of the current issue of anada Savings lionds Since that time interest rates haie increased and can now get more interest than the current per cent paid on these savings bonds Should cash in these bonds and invest the proceeds In MHIH other coin parable investment IS Heart in ordcr to proiwrly advise you how to handle you $10000 in anada Savings Bonds would have to know you inten tions with respect to this money The typcof investment that would be appropriate for you would dcpcnd upon when you felt you will nccd this money and the risk you are prepared to take As you now have the money in very secure invest iiieiit will confine the discussion to investments with minimal risk and secured by the anada iicposit insurance orporation Your investment alternatives would include the following llAltTiCltlfili HANK DEPOSIT itlXliliylS 30 80 days 10 per cent titilltidays 10 per cent 120179 days 10 it per cent iiitkiltv lays 101 per cent IIARliIRlCI HANK liltllFltAlifiS til lliISlUSiT year 10 NT cent to years per cent Large Trust ompany five Year Guaranteed investment crtificates 10 per cent Smaller Trust timpany five Year Guaranteed investment crtificatcs 10 percent Each of these potential investments offers slightly higher yield than the per cent you re currently receiving nothgr look Hy DULUIAS iltlfiliNWtNH if businessman confused net profit with gross profit it probably would not be long before he went bankrupt its pretty safe to say that almost every business makes gross profit selling price less cost price Selling something for less than its cost even over relatively short time obvious ly is exactly the same as giving money away During special promotion of course this is done regularly to attract customers or to get rid of slowmoving products But that only means over the year gross profit is less than wiiat it would have been at the regular markup its the cost of selling the product that is the critical figure if rent wages advertising maintenance deprecia tion heat and so on cost more than his grossvprofit figure businessman has net loss Sometimes the gross profit ap pears to be extremely good but if the cost of doing business is ttXi high an extremely big net loss can occur Youd think all that was obvious know Only fool or knave would confuse the different between gross and net prOfIt Yet its been done by some laborunion leaders to justify their wageincrease demands Even some politicians have unfairly cited large gross profits by businesses espemally f00d Chains to grab votes by sounding to be con cerned for consumers POLITICALSEMANTICS SOThat ha this 10 d0 with the political semantics of file and gm as aPplied to for example socialism and conservalsm COmmunism and Fascism Well faulty definitions and misunderstandings can be fatal in both busmess and somety in general companys Brampton refinery Upper section of the wall Is made of lOOounce size bars The lower section shows 400ounce bars Handling savings bonds to get the best deal llttlt1 each of these investments has some disadvantage when compared to the anada Savings Bonds The chartered bank deposit receipts are currently paying higher interest rate for short term deposits However if you lilttiltl to maintain this 310000 as longer term savings there is substantial risk that on renewal the interest rate available would be lower than the per cent you are cur rently receiving Short icriii interest rates are at historical ly high levels at present One year ago such deposit receipts were offering less than per cent The liartcrcd Hank ertificatcs of Deposit would offer ou higher yield for up to six years as compared to your bonds which mature in seven years interest is paid semiannually as opposeti to only annually on the it The Certificate of Deposit can bc cashed at any time but if cashed before maturity the interest is only 01 per cent or slightly less than you are currently getting The Guaranteed investment crtificates would offer you higher yield but they are not cashable prior to maturity iniess you are very sure that you will not require this money before the end of five years thccxtra one per cent interest will not justify the loss of ii iuidity in summary if you are sure you will be using this money within the next year the licsposit Receipts will earii the most interest if you are sure you wont need the money for five years you could switch to the Otherwise you would be well advised to retain the tanada Savings Bonds at this liiill if interest rates are increased again so that the minimum interest rate earned on cashout of the Cer tificates of Deposit is equal to or greater than per cent it would make sense to switch your investment at that time if you do make sure to do it on the first day of moiitb as anada Savings itonds pay interest only for completed mon ths Net gross profit often confused in this case general misunderstanding of the difference between left and right has led to the dangerous and ridiculous situation where Fascism has been compared With Conservatism the difference being considered by many to be merely matter of degree Actually in certain European countries the anarchists Conservatives etc sit to the right of the presiding officer on the left are seated the liberals or radical groups There is thus an apparent basis for calling socialists left wingers and onservatives right wingers but theres serious midunderstanding here if its not realized that while Con servatives and monarchists are closer to the genuine defini tion of right theres no logic in placing Fascists 0n the right among the Conservatives Just because wars have been fought between the two dictatorships of Tommunists and Fascists doesnt mean that they are philosophically poles apart They are both dictatorships and thus both belong on the left So when poiiticiaii says hes in the centre the ex treme centre as Trudeau told his Liberals to describe their position its not very reassuring when we know that in truth the centre is dangerously close to dictatorshipst Socialism by its very nature must lead to more and more government control over our lives rather than to less and less Asa matter of fact it may be more accurate to replace the two end positions with freedom on the right and slavery on the left its an interesting thought but maybe one way of putting it all this semantic confusion would be to say the world is going to hell for the want of dictionary THed of high beef prices VANCOUVER CPi Tired of paying high prices for ham burger and steaks Fed up with buying fat and bone when youre really after meat Then consider the noble horse Bill Kraan Dutchborn Vancouver butcher who sells an estimated 30 tons of horsemeat year says cuts of horse are cheaper leaner and more nutri IiOUS than beef Despite these advantages the average Canadian avoids horsemeat leaving the limited market to Europeanborn con sumers Even the recent surge in beef prices has not led to increased demand for horsemeat situ ation that Kraan operating out of his small specialty food store in eastend Vancouver finds puzzling When beef prices soared about four years ago some shoppers turned to horsemeat but Kraan said they now seem to be resigned to higher prices or have more money to spend They dont seem to look for substitutes he said Recently Kraans horsemeat was selling well below com parable beef cuts iiorse stew ing meat was priced at $149 pound compared with $189 for beef regular hamburger was 99 cents pound beside beefs $139 and sirloin of horse was $249 well below $369 for beef The only Canadianborn buy eis of horsemeat are individ uals on low cholestrol diets Most of Kraans customers are of French Dutch German or ltaiian origin who acquired taste for horse in their home land anada exports millions of pounds of horsemeat to Eu rope every year its psychological thing Kraan explained if knew someone was feeding me do couldnt eat it But if di nt know would probably find it difficult to tell apart from other meat He said he believes he is the only retailer of horsemeat west of Quebec although slaugh terhouse in Alberta exports an estimated 50 to 00 million pounds of the meat to France annually iiorseineat also is healthier titan beef serving of beef pot roast for example has only half as much protein as sim ilar meal of horse Home con tains twice as much vitamin and 82 and phosphorous