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Gold/Mining/Energy : Gold Price Monitor

GDXJ 99.85

+6.2%

Nov 24 4:00 PM EST

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To: Enigma who wrote (34644)	5/29/1999 1:59:00 PM
From: ahhaha	Read Replies (1) of 116764

They will try but the BOE will slow their sales because the price will be rising. Indeed, the price will be enabled to rise persistently because there will be supply above, the marginal supply coming from the BOE. Gold is falling because the demand below is strong. This is the hardest thing to understand about markets. The trick is to understand the form of the demand. It is supply availability at lower prices. As the buyers see they can get lower prices due to the psychology of the market, a self-reinforcing state, they demand at lower prices. They lower their bids and a little supply finds them. When lowering bids no longer elicits supply, the mechanism reverses. Then a little demand finds booked supply above the market. The psychology reverses. Supply disappears. Sellers raise their offers. You have to pay up to get what they previously would give you. In the gold case there would be a mad scramble to buy. There isn't a pro in the world who isn't waiting for this to occur. Everyone will jump at the same time and the mining companies who have hedged are going to get killed.

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