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

To: John Hunt who wrote (35398)	6/15/1999 1:02:00 PM
From: The Barracuda™	Respond to of 116761

Carmer at the Street.com says that if the inflation numbers are bad, he is going to buy gold.

To: John Hunt who wrote (35398)	6/15/1999 5:07:00 PM
From: Ken Benes	Read Replies (3) \| Respond to of 116761

John: You want to see the price of gold move. A day does not go by with some commentary that at 260.00 more than half of the gold produced each year is not economic. Well, instead of mining uneconomic gold and causing the discount of reserves still in the ground, the producers should get together and announce that they are halting production of every ounce of gold produced at 250.00 and ounce or better. In order to preserve their cash flow, they should follow up with another announcement that they are willing to buy whatever gold the central banks are willing to sell at 260.00 to cover the shortfall by the halted production. Instead of mining gold, they would increase their role as the middle man for above ground deposits held by the banks. The central banks would have to part with better than 1500 tonnes of gold for the remainder of the next year to meet the shortfall. Does anyone have a doubt what the result would be. A short covering rally would blow the market apart, the price of gold would gyrate in a 50.00 range, and the carry trade would end with the manipulators on life support. Could this happen, yes. When, as soon as the producers sever their ties with those who are controlling the market and using the producers as the retail outlet for cb gold. Will they do it, it is doubtful, because miners are like soldiers, they take orders, it makes them feel like good little boys. Ken