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Gold/Mining/Energy : Newmont Mining(NEM) & Newmont Gold(NGC) -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (375)	10/1/1999 1:58:00 PM
From: ahhaha	Read Replies (2) \| Respond to of 587

Nothing new there. Everything stated by the various commentators was analyzed to death long before there had a clue on the Gold Price Monitor thread. Total demand and supply don't determine price. Gold's summer plunge was due to market psychology or what someone expected someone big might do. That's a third order consideration. When price is effected at that subtle level the price isn't even being determined at the margin. The short covering masked another factor: inflation. Why are central banks curtailing a sales bias? The world is returning to inflation and they don't want to be without an inflation hedge. If a central bank returns its gold to private hands, they lose control over the connection between gold and other forms of money. In order to prevent a hyperinflation a central bank must own the lion's share of a country's gold. If they don't have the share, they can't engineer economy. In that environment the gold rich enjoy the benefits of society at the expense of the gold poor and the central bank is powerless to stop the gap from widening. Since there was nothing there, there's nothing upon which to base a gold price projection. Psychology dominates the pricing of gold. Inflation gives psychology a reason to build great expectations. If great in industrial stock means two times growth rate, then the great price of gold should rise far above what there expects.