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

To: Rarebird who wrote (39045)	8/15/1999 1:59:00 PM
From: Ronald Russell	Read Replies (2) \| Respond to of 116931

Rarebird: Wasn't Goldman Sachs recently given credit for advisng BOE to dump their gold? If this is true, doesn't this seem to be in conflict with a large accumulation by them at the same time? If I had an advisor that did this, you better believe I would be seeking legal recourse! If this is true, how do they get by with this and retain any credibility?--Ron Russell

To: Rarebird who wrote (39045)	8/16/1999 9:24:00 AM
From: Rarebird	Respond to of 116931

Yes, No, or Maybe ? Professor von Braun August 14th, 1999 Tops, bottoms, corrections, declines, dips, sideways moves, buying opportunities ? The game goes on. Regardless of which market one looks at, most of them seem to be suffering from some form of stress. The stock market is under pressure which is not surprising since it has been soaring in the stratosphere for some time now. The bond market shows signs of deterioration with interest rates rising, that's a fact. The strong dollar policy also looks a tad weak these days. As for the gold market, well that's certainly stressful and is beginning to look like a buy at these levels. But is it ? What passes for an understanding of what is real wealth in these financial euphoric days is a mystery to us. There is still a lot of unanswered questions out there when it comes to the gold market. The conspiracy theorists are beginning to weaken in resolve which sort of suggests that they are out of ammunition. The evidence of shortfalls in availability of physical metal appears thin at best, still it is begining to appear. The ability to determine what is gold and what is paper gold still appears to be in short supply. The CNBC collection of economic advisors, a recently formed organization whose role it is to cheerlead the Dow Jones averages to new “record” highs, appears to have become very over enthusiastic as they continue to convince the masses that investing in stocks is the path to ever increasing riches. While of course pocketing untold riches from advertising revenue and no doubt ever increasing salaries for their top “performers”, those that “squawk” the best as they lead today's “intelligent” investors to Shangri la. And to some degree (providing you don't look too hard) they have been right to date. But can it continue ? Who knows ? The evidence of the past suggests not. But so far this too has proved to be faulty. The doom and gloomers are not ahead of the game. Is it time to get defensive from an investment point of view ? After all there appears nothing other than roses, roses on the economic horizons. Mr. Greenspan has things under control. Mr. Summers, the recently graduated apprentice of the wizard Rubin, appears to have his sword sharpened and is ready to further the strong dollar policy. Bullishness has become the leading component of the American way of life. Buy now, pay later. No downside. All upside. Well maybe. Maybe not. Perhaps, just perhaps mind you, the good ship lollipop is beginning to dissolve in the sea of its own success. Where are the new buyers that are going to replace those that now wish to sell ? Will CNBC be broadcast in several different languages ? Will Fidelity.com open an office in Outer Mongolia ? Will Mr. Greenspan live to be a hundred ? How much profit can be taken and put to use productively ? Instead of increasing the value of real estate in select areas ? Or used to pay down debt ? What happens when the music stops ? If one was a follower of the “buy at the bottom and sell at the top” investment regime one would have sold bonds and stocks some months ago, but would you have bought precious metals ? Probably not. Which suggests that the bottom is not in for the metals just yet. Stocks have fallen some, not a lot, just enough to allow the smart money to leave the arena while the last of the buyers get suckered in. Very important point. It is interesting to note that CNBC has become less and less impartial in their programming which may suggest that their audience has changed to more and more of the day trading ilk, those that don't care about fundamentals, or real value. After all, its the viewers ratings that price the commercials and the sale of commercials brings in the revenue, something we tend to forget. Caution is not good for ratings, neither is falling stock prices, or bearish comments. Perhaps it might be a good time to buy physical gold. Certainly the price appears to be right, even if it falls further one could average down. One would of course, shy away from the paper gold that appears (certainly from the trading figures of the LBMA) to be the product that is most popular. And perhaps a major contributor to the metals price performance over recent years. fiendbear.com