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

To: Zardoz who wrote (40056)	9/5/1999 10:48:00 PM
From: Rarebird	Read Replies (4) \| Respond to of 116790

< If gold was just a commodity, why did Korea ask its people to turn in their gold in times of crisis? > I'm not sure what your point is here. The Korean government collected approximately 228 tons of Gold from the population in its campaign to attract donations to reduce the country's indebtedness. It was the Korean government and not the World Gold Council that advertised and marketed the " Save The Nation Gold Collection Campaign." To be sure, the Korean government was desperate enough at the time to "accept foreign currencies, as well as silver." But why do you think " the Gold only got mentioned in the news?" They ended up selling about 180 tons. The Central Bank Statement at the time acknowledged the continuing role of gold as an international reserve asset and its special usefulness at times of national crisis or emergencies. < A rise in the US Dollar relative to the US Dollar Index, and gold may very well fall to $230.> Obviously. But the reverse also holds true. A Nice Fall in the US Dollar relative to the US Dollar Index ( below 90 ), and gold may very well rise above the $305 level of October 1998 and hold above that level. Repatriation has just begun. You haven't seen nothing yet. You want to read "crap", Hutch. cnbc.com In reality, the dollar, relative to the US Dollar Index is falling, rates are rising, inflation is rising, and stocks are headed lower. As much as I love the Internet ( and I'm writing this message to you on my Palm Pilot IIIx using Bell Atlantic's wireless Internet technology), anyone who can think that "the Internet is more important than the Fed" in determining the nature and direction of stock prices is living in la la land and on something. PS Why don't you voice your criticisms to the gentleman who wrote the article? Struthers Future Tech Report sentex.net 90% of what I read on the Internet has elements of crap in it.

To: Zardoz who wrote (40056)	9/6/1999 10:33:00 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 116790

Hey Hutch, hope you mind my piping in here as you and a certain person (who doesn't want to post to him) debate. What this other person fails to take note of in his comments about a weakening dollar is the fact that there is a certain inevitability about seeing both China and Japan being forced to weaken their currencies either through outright devaluation, or through printing more so that they can check the prevailing deflation in their economies. That translates (and I realize you know this), into a stronger dollar, or certainly a dollar that maintains these levels. This bodes very poorly for gold. Btw, you are right on the mark about the bullion being coined and sold at a premium. This is another dirty secret of the gold industry where the metal is being inflated by a collectibility premium which will fade once the Y2K crisis passes and people suddenly find that they rare gold coins are really not so rare, and that they are suddenly flooding the market as folks start converting gold back into more liquid paper currency. What this person doesn't seem to want to acknowledge is that the dollar's weakness has been primarily due to growing confidence in the Japanese and other Asian markets, sparking a flow of funds out of the US and into those markets. I may be wrong, but all of the aspects for which he contends bode ill for the US (Y2K, national debt, etc.. etc..) are all issues that face Japan, and other nations to an EVEN GREATER DEGREE. And that means that disruptions on those economies will reverse the flow of money back toward the center (ie: the US). It's one thing to have national debt when your economy is strong, but quite another to possess similar or greater percentages of debt when your economy is tragically weak. Japan has to monetize its debt (which is greater per capita than the US) and clear trillion's in bad loans off of their books. They can merge their way to megabank status, but it doesn't erase the liquidity issues that they have to face with monetization or major devaluation of their currency. That bodes well for the US dollar if done in a controlled manner. If it gets out of hand, the stock market may suffer but bonds will prosper. It certainly means imported inflation will decline while the trade deficit increases. But I wonder if by shocking their economies with currency monetizatio/devaluation, that it may entice Japan and China to buy needed US technology earlier rather than later. And btw, I tend to agree with Lawrence Kudlow with regard to his views on the internet. And the rest of the world has a long way to go to match our economic capabilities in technology. The only scenario I see as negative would be that sometime next year, China senses that it is falling so far behind that the only recourse they have is to become militarily aggressive. Your comments are, as always, welcome.. Regards, Ron

To: Zardoz who wrote (40056)	9/7/1999 7:36:00 AM
From: Mark Bartlett	Respond to of 116790

Hutch, <<supply and demand always cross, but additional supply moves the price lower.>> And as counter-intuitive as it sounds, a rising price increases demand. MB

To: Zardoz who wrote (40056)	9/7/1999 11:30:00 PM
From: Bob Dobbs	Read Replies (2) \| Respond to of 116790

<< If these pundits are correct, why has it become so difficult to locate and buy a gold coin? Because many institutional companies have been transferring their bullion holdings into coins that can appreciate faster then bullion bars.>> Wait a minute ...just who are these "institutional companies?" Can you name one, or at least describe the class? Where is your evidence? What "coins" are you talking about that appreciate faster than bullion bars? What makes you suggest it's easier to locate and buy these "bullion holdings" instead of gold coin? Guess what, it's not! <<The demand for gold is setting records. According to the world Gold Council this past week, gold demand climbed 16% in the 2nd Quarter, a record for any three month Quarter ever. The exchange of gold bullion into gold coins is what is really setting the record. And those are a wash trade. The world gold council distorts the results to suggest that demand is up. But yet the price is falling. So the same marginal excess of supply is leading the push for lower gold. >> Again, where's your evidence to back up such a claim? Yes, the gold price has gone drastically lower, especially in the last two years, but that is due to gold leasing by the CBs, not a mobilization of bar by "institutional companies," as you suggest. Is this what you mean by the "SAME marginal excess of supply" that you talk about? "Same" as what? Bob