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

To: lorne who wrote (40598)	9/21/1999 10:56:00 PM
From: Probart	Respond to of 116782

Good questions, I do not understand it. BTW, for what it is worth I trade mostly tech/internet stocks and hedge 30% of my total portfolio in numerous gold investments. It has been cheap as of the past few years and I am loaded up with this dirty, inexpensive stuff. Hey, many ways to skin a cat. Have also been lurking here for more than a year and have read every post. Learning a ton, thanks to all. Probart

To: lorne who wrote (40598)	9/21/1999 10:59:00 PM
From: lightning	Respond to of 116782

The market is so thin at this point and there is no physical gold around that anyone with some cash and guts can turn this market.The South African's have so much to lose if the price continues to slide that maybe they are the ones that squeeze the shorts. Has anyone heard exactly how much Marty Armstrong is short?? How much does 750 tonnes of buying move the market??

To: lorne who wrote (40598)	9/21/1999 11:32:00 PM
From: long-gone	Respond to of 116782

<<Would they need it to cover forward sales? Not likely they would have a short position. Just don't know. What do you think?>> How about they were only taking the gold off the market? After all, much of the gold the BOE is selling is FAR below the cost of production for a great many mines, there-by , being a very wise business investment. Maybe mining the central banks makes more cents(spelling intended) than mining the ground. It should be noted, were this ANY OTHER COMMODITY( DRams, oil, cattle, pork, anything, even steel) when an outside source sells below cost it draws an inquiry by the Department of Justice!

To: lorne who wrote (40598)	9/22/1999 2:14:00 AM
From: PaulM	Respond to of 116782

Lorne, B, take alook: AngloGold Says Bid for Gold Failed "End of quarter buying would have allowed the South African miner to deliver into some of its hedges..." "Williams suggested the successful purchase...by fellow South African miner Gold Fields Ltd could have been to cover hedges in place for its Beatrix mine...." biz.yahoo.com P.S. No mystery here. In a sense, virtually all the producers are short One very general way to look at "hedging" is taking the short side of something that your inherently long in. Except the miners are inherently long gold in the ground (and that has to be taken out of the ground). It may be difficult to make good on previosuly agreed to deliveries, or deliveries on demand, when your costs are rising, oil prices are rising , strikes are more frequent, etc. while your return price is fixed. And it's likely to get harder and harder, particularaly for the South African producers of the type featured in this article. I think a lot of goldbugs are confused by the role miners play in the gold market. They, along with the BB's and CB's were a very natural part of the system, which only today is manifesting its flaws. The CB's provided a cheap source of exploration financing and good business for along time (effectively allowing production a decade forwrd to finance current exploration!) Who wouldn't be tempted by that? In my view, the statement by Anglogold suggest the gloves are now off. A sudden, severe rise in the POG is in the interest of no one associaetd with the gold maket, including the miners. But, by the same token, I think Anglogold's statements are a reflection that everybody (miners, Rothschild bullion bank, Swiss CB etc.) is upset with the BOE for going too far, i.e., for driving the price so low liquidity has disappeared.

To: lorne who wrote (40598)	9/22/1999 6:01:00 AM
From: Bobby Yellin	Respond to of 116782

First as usual I really liked what Paul answered in his great post "In my view, the statement by Anglogold suggest the gloves are now off. A sudden, severe rise in the POG is in the interest of no one associaetd with the gold maket, including the miners. But, by the same token, I think Anglogold's statements are a reflection that everybody (miners, Rothschild bullion bank, Swiss CB etc.) is upset with the BOE for going too far, i.e., for driving the price so low liquidity has disappeared." again I think the gold market isn't an island and one has to view it in the total picture. that is why I appreciate Hutch's posts so very much..he sees it as part of the whole gold is a challenge against currencies right? but with the central bankers and strong bull market bubble and the huge internet force and now the Asia on road to recovery.(.still have my doubts about Japan although dolhmen whose calls I deeply respect thinks the tax reforms(if I remember)will now lead to Japan's recovery.)there are still lots of places for money to flow.so.. forces in favor of gold off the top of my head.. remember that bill gross of pimco said there were growing defaults in junk bond market..also deflationary forces still growing from internet which has to cut into margins of companies.health care costs are raising,hmos are in trouble..money has more places to flow besides big blue chips ..real estate bubbles in some areas and higher leases for businesses and I think a lot of hedge funds and derivative players who have ridden the coattails of the governments' interventions are getting slaughtered and will grow more and more reluctant to play games with the gold market and most importantly maybe for gold..remember Barrick's spokesman said producers are using currently cream of their crop.. Maybe the producers are finally running out of cheaper gold..and are beginning to need a fix? Maybe because of the return of the Asian market, Gold fields etc is beginning to think get it while it is still cheap.. Gold to me isn't even acting like a commodity..it is acting like an abused child..a scapegoat..