Zeev's latest gold post from the MDD thread
KyrosL who wrote (69362)
From: Zeev Hed
Saturday, Feb 17, 2001 12:44 PM
Respond to of 69397
I agree that when gold gets under $260 or so, it could be bought, but it should be sold as it gets closer to the $280/$300 range, not a
situation for a huge gain, IMHO. Until we see massive closing of inefficient mining operations, the supply shortages (and consumption is
slightly higher than new output plus recycled gold), the overhang of the CB gold will be ample to provide for these shortages. It has been
my opinion for quite a number of years that the CB's have long deserted gold as a reserve, for the simple reason that having currencies tied
to gold will create permanent inflation (I have explained this position on this thread sometime ago). Dumping all the gold at once would have
created a major discontinuity in the financial markets, so they keep the balance very tight, and probably even manipulate the price to their
benefit. The US actually is still forbidden from selling its hoard, but I strongly believe that once the rest of the world will bring their reserves
to levels that are strategically "safe" rather than monetarily safe, Congress will remove that impediment (and as usual, we will sell to the rest
of the world our gold at inflated prices, just as we have sold them expensive real estate and car companies in the past <g>).
Zeev |
