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Politics : Dutch Central Bank Sale Announcement Imminent?
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To: goldsheet who wrote (7812)9/18/1999 4:11:00 PM
From: Crimson Ghost  Read Replies (1) of 81164
 
Bob:

Well managed companies and industries strive to maximize returns to shareholders, not just survive. The base metal industry managements are doing a good job in this respect -- consolidating and cutting output to boost prices.

But the gold industry continues its suicidal strategy of high production at rock bottom prices while continuing to hedge in a big way. As a consequence stock price performance has been disastrous. As you observed on another thread, the base metal stocks have soared this year while the gold indexes are down.

As long as this industry is willing to accept whatever gold price the CBs and bullion banks dictate, stockholders will suffer no matter how far costs are slashed. Lower costs only intensify the short attack on POG. The bullion bank objective is to keep POG low eough so that only the most efficient mines earn a reasonable profit. Wayne Angell has said this in no uncertain terms.

Despite all the talk of the CBs wanting to dump most of their hoards, the evidence does not support this line of reasoning. If the CBs really wanted to dump their gold, why did they sell so little when prices were much higher? Their policy of talking down gold combined with cheap leases to the shorts have given the bullion banks huge profits -- profits that would have accrued to national treasuries if the CBs had sold earlier.
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