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Gold/Mining/Energy : Gold Price Monitor

GDXJ 104.49

-2.1%

Dec 8 4:00 PM EST

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To: Bald Eagle who wrote (3985)	12/9/1997 1:00:00 AM
From: Jaakko	Read Replies (2) of 116800

No connection at all to him!!! Please note that the POG is being manipulated through the huge derivative markets in gold. ONLY when people are starting to DEMAND deliveries of the PHYSICAL gold instead of paper gold, will the POG relate to demand and supply of the PHYSICAL gold. One of the hardest concepts for a "modern" investor is to understand that the US$ in its current form (after Nixon closed the gold window in 1972) no longer qualifies as money, but is held up ONLY because of the CONFIDENCE people are attaching to it (confidence that the next guy will take it for exchange of goods). The very minute you discover that the next guy is hesitant or unwilling to take it, you want to get rid of it so fast that you'll exchange it for almost anything that someone is willing to part with. You can rest assured that at that moment there won't be too many people willing to part from PHYSICAL gold unless you bring A LOT OF VALUE to the other side of the table!!! You can think of the derivative market in gold as people trading pieces of paper containing promises to sell or buy gold at certain prices at certain times. Buy or sell PROMISES, that's all!!! 40 million ounzes a day (of PROMISED gold) in LONDON alone!!! Talk about volume!!! IT IS ONLY WHEN THE TOTALITY OF THESE PROMISES COME TO FRUITION ROUGHLY AT THE SAME TIME THAT IT BECOMES OBVIOUS TO EVERYBODY THAT THERE IS NOT ENOUGH PHYSICAL GOLD ABOVE EARTH TO SATISFY ALL THESE CONTRACTUAL PROMISES!!! Smart money is bying PHYSICAL gold and putting it away!!! P.S. Y2K bug will wipe out the derivative market but not the PHYSICAL gold from yopur mattress!

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