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

To: d:oug who wrote (36819)	7/8/1999 3:25:00 PM
From: Ron Struthers	Respond to of 116753

<<how about giving your view of GATA.>> Hello Doug, basically I agree and support what GATA is doing, I have noticed for some time that the gold market was acting strange and far different in what fundamentals and technicals could explain. The gold carry trade is a real factor, but it will eventually unwind and unfortunately many will get caught because the game has become bigger than the market can support, in other words only so many will be able to unravel this trade while others will take big losses on it, Long term is probably the 1st known one but was sent a life boat. GATA has helped expose the huge short positon in the market, at some point in time there will be other big speculators that will enjoy and make immense profits from this squeeze, many playing the market on the short side will be just as happy doing it from the long side when they believe the time is right. GATA made mention of one major gold producer missing in the letter to BOE. Barrick??? I think so, I have long watched Barrick as a major signal of what to expect in gold. With Bush and Mulroney on the board I believe ABX has had the inside track on CB sales, market sentiment etc. Wonder why Barrick hedged all their production at $400? Watch Barrick's moves, when Barrick starts unwinding their hedges, its time to be long and aggressive, for now we are bottom fishing. At some pont in time, a good rally in gold will occur ,a new bull market. This is going to cause a big problem because there is just not enough physical gold around. This will be quite noticeable when the banks request back the gold they lent out. Because the physical demand for gold has been so strong, far outstripping mine production, this has basically been met with central bank lending and leasing. The gold bars lent out by the central banks have been melted down and used for jewelry. In other words the gold bars can't be paid back. At some point in time a rise in the price of gold for whatever reason will cause the central banks to become concerned and will want their gold back, it is still listed in their books as assets, but has been lent out. The CBs could actually panic like they did in 1982 when gold went to $300 to $520 in a matter of weeks. If GATA is the event that triggers the next bull market, so be it. As for myself and newsletter, I have been putting lots of buys on senior, mid tier and cash rich junior golds for the last 10 months. The time to buy is when they are cheap and don't worry about timing the exact bottom of the gold market. However I will take a stab with a few gold stock call options . Go GATA Go!!!