Pacific Rim Mining V.PFG Message Board

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Gold/Mining/Energy : Pacific Rim Mining V.PFG

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To: russet who wrote (13764)	9/25/2000 1:06:32 PM
From: Claude Cormier	Read Replies (1) of 14627

<<On the other hand, gold is suffering from oversupply in recent years, despite the crap you hear from Gata and other conspiracy theory folks. >> I can't share this opinion with you my friend. Everybody agrees (and I mean everybody) that the extra supply you mentioned is coming from the CB's who have been playing the gold carry trade or some variation of it. What they disagree on is the size of this supply...4,000-5,000 tons or 15,000 tons. Evidences (the BIS numbers) are that it is closer to the figures advanced by Gata. Everybody also agrees that demand far exceeds mine production and scrap supplies (the later have been drying down in recent years). Now is there a conspiracy... maybe not.. probably not. But this doesn't change the root of the problem. Excess supply coming from the CB's playing a risky game with their gold reserves, initiated by bullion banks in concert with some large producers. You are right of course about the $US and gold being currencies and the former being in great demand while the later is a mirror reflexion of the success of the former. The question is how long can this last? Which one of these two currencies is overvalued and which one is undervalued and cheap. CC

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