Being in business, you have to be able to spot the bottom of a market. It would appear with the amount of leased gold, short positions, and hedged forward sales, a good part of the cb hoard is spoken for. A price below 250 suggests a serious loss of production and a price of 250 to 275 guarantees 40% of production is either unprofitable or breaking even. Why with this situation and a likely market bottom do the speculators and cb's count on the participation of the producers to sell forward, short circuiting any kind of rally as they materialize. Why don't the producers mortball marginal production and replace the lost production with gold from the cb's. You can go on and on, yet the simple fact, the producers are giving away a finite resource in a market dominated by speculators/short sellers and bankers with an agenda. The bankers are no fools, they give the impression of wanting to divest there gold hoards, yet the rely primarly on the producers to safeguard the parting with their metal with the companies gold in the ground. The bankers accomplish their agenda, the speculators are making a killing, the market is getting a source of liquidity to support overvalued equity markets and the producers get a migraine. Without them the manipulation cannot continue, yet those controlling the market are counting on the producers to come thru with a home run when it is needed most. Selling into a rising gold price.
Ken |
