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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: TATRADER who wrote (35155)	6/11/1999 8:19:00 AM
From: SgtPepper	Read Replies (2) \| Respond to of 116756

Bad days for gold are due solely to british announcement that they intend to sell on a certain date. Now there must be a huge number of shorts waiting to cover that day. But XAU is holding up nicely, which says this storm will soon be over. I was thinking this morning, how could the brits be so stupid as to get themselves into this position. But there I realized, they can just as easily announce that market conditions are not right at this time and simply POSTPONE THE SALE, forcing shorts to cover and raise the price to a more profitable level. Seems to me that the Brits were really smart because their move, perhaps inadvetantly, has created a captive market for their sale when and if they get around to doing it. They now have the shorts by the bxxxls. PS, bought COMEX gold at 261 yesterday to add to my silver position.

To: TATRADER who wrote (35155)	6/11/1999 11:56:00 AM
From: Richard Mazzarella	Read Replies (3) \| Respond to of 116756

Hi Mark, I agree that gold is oversold, BUT IMO it's going to be oversold even more. Just the bullish sentiment on this thread suggests so. We need a massive washout to clear the decks. That may occur as the UK selling progresses, maybe as others scurry to get out first. I don't buy the "we've bottomed" arguments, or smart money will anticipate the bottom. The decline has been too steep, too long, and with too many false starts to get any major commitments. Gold hedge funds have already blow their wad and big money will wait for the washout and proof for POG recovery IMO. I still believe that the producer hedging was the real "devil" for gold market. It's taken 20 years to do what could have occurred in months otherwise. I wouldn't invest in a hedging producer if you're looking for multiples on POG recovery.