<<This coordinated effort between the central banks, the investment bankers, and the producers is a cozy arrangement that is profitable for everyone except those who believe gold is a store of wealth.>>
I agree with you that this is a co-ordinated effort which benefits mainly the GBs and ABX and other forward sellers. One needs to keep focused and remember that the gold has been sold. That is what business is about, finding the ways to survive and finding ways to keep your supply at low cost. ABX has done this. Granted, it is not a good thing for those who are not or not able to enter into such agreements. There is a lot of grousing going on, however, when one is on the winning side it looks a lot better.
This is a type of Microsoft IMO where volumes of scale just keep getting better.
Maybe the gold business needs this kind of shake-up. There are certainly a lot of shaky characters in the gold exploration business. Lots of false reports (including Bre-X), saltings, etc which have shaken the industry to its knees. My view is different than yours in that I believe that the Bre-x's of this world have brought the demise of the juniors. Now, the market will only support a junior with the goods, but not much inbetween, too bad. Future gold prices will be dependant on a reversal of attitudes in a number of areas. As for myself, I'm going to go the sure route - there is little to no risk in ABX at this time, mainly due to their hedging program. Their upside in future times is enormous. |
