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

To: Zardoz who wrote (37617)	7/23/1999 7:45:00 AM
From: Mark Bartlett	Respond to of 116770

Hutch, While Barrick and a few others can sell forward and hedge (due primarily to low cash costs) there is no way that they can fulfill the world's demand for gold. In the mean time, others are going belly up - or at the very least having to put mines on maintenance. Sooner or later that will change. The real issue at present is how much more that central banks are willing to sell/lend. If they are as exposed as some would have us believe, then I suspect even they will eventually say, enough is enough and slowly start to call in their gold. When that is going to happen, is anyone's guess - but sooner or later it has to happen - even if gold is only a commodity. Further, it is clear that the present gold sales into the market have been designed for purposes other than that which has been stated publicly. The IMF gold sale for debt relief to poorer countries is the best example. The countries to which these acts of "altruism" are directed are clearly going to be hurt from these actions and have stated such. To go ahead with the sale, in the face of the "benefactors" protestations, is absurd and clearly indicates motives other than that which has been stated. The fact the British designed there sales as they did (essentially blocking out a large potential area of the market i.e., other buyers) is also highly suspect. It is clear to me that all of these actions are still pointing to one thing - gold is still viewed as the ultimate indicator of the health of an economy and some elements are desperate to portray that impression - in the face of data suggesting otherwise ... quite a shell game. One day the pea will not be found under the shell ..... and the game will end. Have a good day. MB