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

To: sea_urchin who wrote (7632)	9/4/1999 11:49:00 AM
From: Enigma	Read Replies (2) \| Respond to of 81234

This is Ken Benes point. Traditionally when gold prices fall the miners highgrade - i.e. mine the richer ore. This must be happening now in a big way with the underground mines - however most of the large mines which have come into production in the last decade or so are huge open pit low grade deposits - so highgrading is not possible. My only guess at the thought process is that the large producers know they can keep on going and are counting on the marginal producers falling by the wayside, which in turn will cause a rise in the POG. There is no commonality of interest between the parties. d

To: sea_urchin who wrote (7632)	9/4/1999 10:45:00 PM
From: goldsheet	Read Replies (2) \| Respond to of 81234

> More and more I keep getting the feeling that the mines > are acting against their own self-interest by not cutting > production in order to raise the gold price The major miners continue to increase production, lower cost, and maintain excellent cash flow. So what if spot gold stays low, it will just reduce the cost of acquisition of the smaller firms. Maybe someday there will be 10 firms that control most of the world's gold production and will be able to set prices (ala DeBeers) instead of taking the market price - now that's a real conspiracy theory ;)