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Gold/Mining/Energy : Gold Price Monitor

GDXJ 126.16

-0.1%

Jan 13 4:00 PM EST

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To: Enigma who wrote (39281)	8/19/1999 4:33:00 PM
From: Bob Dobbs	Read Replies (2) of 116856

DoubleD: Ken's referring to mine supply ie. production which physically increases the above ground stock each year. This is probably closer to 2500 tons a year but who's quibbling. He is correct in that whatever gold is in the warehouse can be sold or leased on paper, and that's what's responsible for the decreasing price, when the demand/production fundamentals point to a theoretically increasing price. However, it is not obvious that the annual mine supply increases the above ground stock available to be mobilized AT THESE PRICES. It only makes it more likely given our lack of information. However, the physical deficit between demand and production running at 1500 tons and widening each year, is significant in that it overwhelms the previous consideration. All the paper mobilization does is delay the inevitable market rally and increase its eventual magnitude. The big question is: how much gold is still available to be mobilized and at what price will it be sold at or what interest rate will it be leased at. After all, everyone has their price! Bob

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