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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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From: John McCarthy	9/17/2006 10:33:19 AM
	Read Replies (7) of 78416

Please - Just choose one: The price of gold has dropped because: (1) Gold is a commodity and not money (currency) Consequently, it has dropped with other base metal commodities. (2) Gold is coupled with oil. Oil has dropped so gold MUST drop. (3) USA long term interest rates have declined (per some show on ABC radio). They have declined because inflationary trends in USA are declining (again per some ABC radio show) Gold price movements and long term interest rate movements move in lock step. Hence - gold is headed lower. (4) Due to the previous rise in gold and silver prices, TRINKET buyers have purchased LESS gold. Trinket demand for gold and silver has declined __%. and this lesser demand is the reason for the decline in gold prices. (5) Central Banks in Europe (excluding Germany) have sold a large amount of gold per some contractual agreements that they had to honor. The supply of gold that they have put out there has overwhelmed the demand for gold. (6) The rise in the COMMODITY PRICES is over per some big investment house tabloid (was it JP Morgan?) ...... Therefore (1) applies. (7) Hedge funds were in gold LAST YEAR but are on the sidelines this year. The investments demand for gold yr over yr has declined. (8) The Dollar is KING like. It has risen ALTHOUGH - from a seasonality standpoint - it should have already started to TANK. The strength of the dollar has killed off the demand for gold from those buyers who consider gold a currency. (9) The demand for base metals from China is declining. There are some reports (on Mish's board or some board) indicating that central planners there are trying to reign in on the growth in China. Reduced base metal demand from China would drive base metal prices down. Therefore (1) applies. (10) All metals traded on the London metals exchange are in decline. Curiously uranium is NOT traded there (don't know if this is factual) and uranium prices are still rising. Somehow the London Metals exchange has engineered this decline in base metal prices. As such (1) applies. (11) There is an underlying mass short selling of base metals. This is reflected in the increase in the size of the derivatives market. This short selling includes gold. (12) China has decided to hold onto dollars and not diversify out of the dollar i.e. hold more gold reserves. This has reduced the demand for gold. (13) Impossible to fully understand. (14) None of the above. The reason gold has declined is because ..... YOUR THOUGHTS regards, John

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