SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Newmont Mining(NEM) & Newmont Gold(NGC)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Broken_Clock who wrote (365)9/28/1999 12:31:00 PM
From: ahhaha  Read Replies (1) of 587
 
You want to know this lending quantity because you think that will help to figure the demand/supply situation. The demand/supply situation has little or nothing to do with the price. What fundamental difference is there between several months ago when the price was collapsing into a hole and now? None. The wild swings were all psychology based on what someone said they might do. Might do does not create demand or supply. Total demand and total supply does not determine price. That's econ 101. Commodities are notorious for exaggeration and that is a matter of human emotion. Can you predict how stupid people can be?

The thinking goes that the European CBs were lending gold so that speculators could sell it driving down the price. It wasn't the selling that pushed price down. It was the belief in the above mechanism which caused buyers to lower bids or withdraw from the market. The result was that it took very little supply to cause price to fall. The market was inelastic with respect to marginal supply. The quantity sold wasn't important, the psychology was. So what good will it do to figure out how much demand there is? About the only way to assess the price potential is what I implied with NEM's hedging. That's all psychology too.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News