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

To: long-gone who wrote (40646)	9/22/1999 5:32:00 PM
From: Ken Benes	Read Replies (4) \| Respond to of 116790

Richard: It is very frustrating trying to explain simple things to a person with tunnel vision. Your myopic understanding prevents you from comprehending that within those two conditions there is somewhat of a chronology. First, the price of gold has to begin to rally which it has and a significant part of that rally can be attributed to the oversubscription of the BOE gold sale. More significantly, a portion of the bids came from producers looking to close their hedged positions. Now for the hard part, if you will notice, gold rose 3.60 today and the XAU was up a scant .85. The reason, investors are not putting their money on the line. Why! Because there is a good bit of skepticism that this rally will succeed. Any why might it not succeed. Pressure from the bullion banks on the producers to sell forward because the price is not going higher and this is your chance to sell forward at a premium. In the past, the producers could not drop there pail and shovels faster enough to call their brokers. Now that we have that clear, lets figure in the Asians. Why should they invest in a market controlled by entities other than normal supply and demand. They understand that there is a good probability that the producers will use their valuable reserves to underwrite the leasing programs of the cb's, effectively circumventing golds normal role in an environment of a declining dollar. If they were more confident about a rising gold price, they would in fact invest some of the surplus dollars they are accruing from the terrible deficits incurred by the US. This added demand would drive the price of gold to 300 dollars or higher. Unfortunately, they know, the cb's along with the complicity of the bullions banks and the producers can prevent that from happening making gold a bad investment. I know you probably did not get all of the above so I will let you go to continue browsing the headlines for little tid bits of doom and gloom. By the way, I am very disappointed that there was not one post from you concerning the 7.6 magnitude earthquake in Taipae, nor did I hear anything about the fighting in Timor. Richard you are dropping the ball. Ken