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Gold/Mining/Energy : Gold Price Monitor

GDXJ 109.23

+3.7%

Nov 28 4:00 PM EST

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To: Ken Benes who wrote (35636)	6/21/1999 9:08:00 AM
From: Enigma	Read Replies (1) of 116789

<<The producers cannot and will not act as a cartel for one main reason, they are subsidiaries of the central banks. The term subsidiariary is tantamount to subjects and subjects get directives, they do not give them>> I don't know why you persist in this fiction? The producers are not an amorphous group - unlike the OPEC situation where most of the producers are national entities or where production is politically controlled. Secondly, as someone pointed out - the banks are in most cases the customers of the producers - you seem to think the opposite? Make no mistake about it - if this price persists more producers will shut down money losing mines - as Kinross did recently with the Macassa Mine. But some will want to ride it out - using more profitable mines to subsidise the marginal or losing mines. With an underground mine, closing down the operation is no small decision - it is expensive to start the mine up again in future, not only dewatering the shafts, but also getting back key personnel.

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