BRE-X, Indonesia, Ashanti Goldfields, Strong Companies. Message Board

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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.

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To: alan holman who wrote (27595)	12/19/1997 3:00:00 AM
From: Phil Jones	Read Replies (1) of 28369

Alan: Graham Farquharson says in the CP report that nothing like Bre-X ever happened before "or could again". I wonder about this last part. Bre-X took over investors. They wanted to believe. Even though the info coming out of Busang was "too good to be true", investors wanted to believe it. What I never understood was why, when Bre-X was adding 200,000,000 ounces to the world's gold reserves, the price of gold didn't drop through the floor. Instead it was over US$400 at one point. And after Bre-X's "200,000,000 ounces" had vaporized, the price of gold plunges. That suggests to me that the big gold traders in the world never did take Bre-X seriously. Imagine how low the price of gold might have gone in recent months if the 200,000,000 ounces of reserves had been confirmed. US$200? Anyway, Bre-X was great entertainment for a year, and gave good insights into how greed often gets the better of people's otherwise rational thinking.

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