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

To: hunchback who wrote (35844)	6/25/1999 1:59:00 AM
From: Exsrch	Respond to of 116770

I gave some thought to this recent price uptick in AU prices. Hopeful that prices might recover. Frankly, I found myself somewhat confused in my hope.. Obviously the market is reacting to the Fed's impending 25 basis point increase (market estimate, CNBC) and the market is pricing that into gold. There is speculation and hope that the AU price will strengthen near term. But how can gold possibly strengthen long term? I hear so much talk of conspiracies by Governments, CB, bullion and investment banks. If that is true why would the conspirators let AU prices rise? Because they don't have any gold in CBs to sell? And let say that they don't have as much gold as we think they do (not quite a provable fact basis). They could simple and quite transparently sell amongst themselves (CB, investment banks, bullion bank etc) the gold they don't have. Unless there is some disaster of huge proportions I just do not see an exogenous shock that can overcome the near and mid term manipulation or operations (depending on what you believe) of AU prices. Especially in a steady state where we have order in the marketplace. Yes, in the long run someone has to pay the piper. But who knows when the time will arrive? 1999, 2007 or 2010? In essence there in no supply demand imbalance. As long as CBs are willing to lend/lease to the market we are screwed if we wait for gold prices to rise. If you believe that gold has bottomed out how can we ever believe that it isn't going to stay there (not indefinitely but for sometime) with a group hell bent on keeping it low. And they have the enough gold to fight the increase in gold price. We need a killer shock to the system. No, not the commercial and industrial supply and demand equation for gold. The exogenous demand for the monetary gold to preserve value equation for gold. When that time comes no one (lawyers, accountant or public relations firms) will accept stock options as part payment for services(can you believe faith in stock options are so high that people are accepting options instead of dollars?). Gold bugs complain about people accepting non-gold back dollars what about paper (stock) backed by dollars of profit in the future (if! they can even earn a profit). In conclusion, I don't think in a steady state (no sense of panic) anyone who believes in a conspiracy can hope for an increase in gold price. You have to wait till the poop hits the fan where CBs cannot adequately overcome the monetary demand for Gold by lending/leasing . Your thoughts are welcomed. Exsrch

To: hunchback who wrote (35844)	6/25/1999 5:35:00 AM
From: Alex	Read Replies (1) \| Respond to of 116770

6/24/99 - British Public against Gold Sales <Picture> LONDON (June 24) XINHUA - The majority of the British public are against the government"s plans to sell more than half of the country"s gold reserves, according to the industry-funded World Gold Council (WGC). The WGC, citing surveys of public opinion in France, Germany, Italy, the U.K. and the United States, said on Thursday that the public in five of the world"s leading economies remained supportive of the role of gold as a reserve asset for governments. The surveys were conducted in 1998 and 1999 and in Europe, sampling 1, 000 citizens representative of the general population in each country providing an error margin of around 2.5 percent. In the U.S., the survey sample was 800 for a margin of error of around 3.5 percent. George Milling-Stanley, manager of gold market analysis at the WGC said the surveys showed that in many instances, public policy seemed to be out of step with public opinion. "The strength of the public"s support for gold on both sides of the Atlantic and the fact that people want to maintain or increase their nations" gold reserves, will come as a surprise, perhaps even a rude awakening to several governments, central bankers and gold market commentators," Milling-Stanley was quoted by local media reports as saying in a statement. Among the findings in the surveys were that 67 percent of Americans wanted gold to be the country"s primary reserve asset while more than 67 percent of Britons believed the country"s gold reserves were an important support to the economy. Some 85 percent of respondents in France, 67 percent in Germany and 68 percent in Italy believed the European Central Bank should acquire more gold to augment its reserves in support of the euro, the WGC statement said. The gold price has weakened by around 11 percent since May 7 when the U.K announced plans to sell 415 tons of gold reserves. Planned IMF and Swiss central bank sales have also affected market sentiment. Enditem 24/06/99 21:54 GMT