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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (6637)	6/23/1999 12:20:00 AM
From: Enigma	Respond to of 82065

Ron - the reason gold has been produced at lower cost in recent years is due to the fact that large low grade deposits near surface can be mined using heap leaching - Barrick's Goldstrike deposit is a prime example. These projects are often on a vast scale with huge initial capital costs. This is the big difference. The trucks at Goldstrike are powered by electricity. The price of oil fluctuates from year to year, so it's a marginal factor - favourable one year, less so the next - but it's the technology of the recovery method that has made such a large difference. And the same thing seems to be happening with Nickel. d

To: Hawkmoon who wrote (6637)	6/23/1999 7:02:00 AM
From: long-gone	Read Replies (1) \| Respond to of 82065

biz.yahoo.com

To: Hawkmoon who wrote (6637)	6/23/1999 10:22:00 AM
From: Enigma	Read Replies (2) \| Respond to of 82065

Ron - First the news from the Congress is excellent - this IMF thing should be killed if only for the crushing lack of logic inherent in it. Second - if this is not a bottom or near bottom in gold I'd be very surprised. Balance of risks vs. internet stocks, etc., which brings me to the Third point: Too much emphasis is being placed by you on the mining cost factor - sure gold can be mined for less - but the mine supply/industrial demand equation is in deficit. So the main problem is on the speculative side - most speculative money over the last few years has been sucked into paper assets and away from hard assets like gold - the gold market is thin compared to paper in all its forms including derivatives. Perceptions change - the gold market will IMO surprise everyone - it won't take much disenchantment with paper for this to happen. You read it here first - remember?