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Gold/Mining/Energy : Gold Price Monitor

GDXJ 101.44

+3.5%

4:00 PM EST

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To: Robert Dirks who wrote (43769)	10/25/1999 9:21:00 AM
From: tyc:>	Read Replies (4) of 116756

I believe the strength of today's stock markets represents a huge vote of confidence in the world's central banks whose policies are to maintain a sustainable rate of growth in world economies. Don't fight the fed..... And don't fight the other powers that have proven their abilities to keep a tight rein on currency (and gold) prices. Last week in Denver an officer of Placer Dome said that when you include ALL costs including exploration, the true cost of gold needed a price very much higher than the current one. (I think he mentioned $400 +). That being so, why would anyone want to buy the shares of gold-mining companies ? Why would anyone feel bullish on the price of gold ? When you are reliant on market prices, the MARKET represents the only true reality. Currencies (and I include gold in this category) should be only a tool to facilitate the achievement of the economic goals of sustainable growth. Physical gold is required to make jewellery. Most of the other gold is held in depositories such as the Bank of England.... and it doesn't move from there even when nominal ownership changes. All this "lending" is just paper.... Are you expecting a "run on the banks" in which the owners of the gold demand to take physical possession of their gold ? In such a situation, don't you think that the Central Banks would quickly review their options ?

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