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

To: Braincramp who wrote (42482)	10/8/1999 12:34:00 PM
From: Zardoz	Read Replies (3) \| Respond to of 116764

My suggestion to anyone trading stocks in Canada, is to limit themselves to the TSE. BRE-X comes to mind. As a matter of fact, Delgratia Mining Corporation was delisted from the VSE for improper disclosure and remained on the Nasdaq DELGF, where it traded to all time new highs and yet was a typical USA scam. I owned that one from the $4.25 to $16.00 range, and got out days before the delisting. The NASDAQ is the worlds largest scam market. To suggest that the TSE is safe is a fallacy. YBM Magnex International Inc comes to mind. Hutch Point is they are all over the place. To suggest one exchange is worse then another is a lie.

To: Braincramp who wrote (42482)	10/8/1999 12:52:00 PM
From: long-gone	Respond to of 116764

The Debacle in the Gold Market Professor von Braun The Rocket School of Economics October 6th, 1999 As we have pointed out before the gold market has been an aberration for several years, a fact that other gold market commentators have picked up on and pointed out. The sale of leased gold into the supply and demand market allowed for the gold price to be overwhelmed to the downside, and more importantly allowed for goodness knows how many paper contracts to be written. The daily trading figures issued by the LBMA evidenced a turnover on that market alone of in excess of 1000 tonnes traded, mostly paper contracts. The reality of the situation was that somehow or other the illusion that gold no longer was a store of value and as such, would be sold off, became the ?idea of the day?. No thought it seems was given to the consequences of this vastly erroneous concept by any of the players. Whether they be Central Banks, bullion banks, hedge funds, mining companies or large scale jewelers seeking an extra point from their purchasing activities matters not. What does matter is that a market that should have been operating under the free market concept of supply and demand was fed with an artificial supply, leased/lent gold, and as a result, it did what any market would do under those circumstances, it declined. And declined and declined some more. The more it declined the more entities became involved, all of course buying the story that gold was no longer required to support the worlds monetary system, nor was it an alternative to paper currencies. Never mind several thousand years of deceitful activities re the debasement of currencies, no, lets debase this one as well. The Central Banks apparent willingness to ?earn? income from this ?no longer? needed reserve asset, was of course aided and abetted by the bullion banks who were making large profits and the more they acquired, regardless of the method of acquisition, the greater the profit. What a deal. History has shown us that this type of activity always ends in a disaster of sorts for the players and indeed for most market participants. Now, with a rapidly rising gold price, the market participants do indeed have a problem. We have stated before that in some ways there were two markets, one running on the back of the other. The physical metal market trading 4000 tonnes per year and the paper market trading in excess of 2000 tonnes per day. What was being created here was the mother of all debacles, simply because the paper market was deemed to be real, when, in fact it was as illusory (from a real content point of view) as owning real estate on the planet Mars. A tad difficult to actually take possession of. Descriptions of the absurdity of this activity appeared in several places, mostly on the internet at various website locations. Some of these commentaries were sound, others hysterical in their admonition of the activities of the major participants in this market. Conspiracy theories abounded and much ?crowing? and mutual back slapping appears to be currently taking place as the gold price moves through the $330 level. Affirmations of a ?new? bullmarket in precious metals abound. WE DO NOT AGREE. There is know way that this ?lets mess with the gold price game? can end in so short a period of time. The actual size of the paper gold market is an unknown, how involved in it are the Central Banks is an unknown, the actual extent of bullion bank involvement is an unknown, the involvement of mining companies doing imitations of hedge funds is an unknown, the involvement of hedge funds themselves is an unknown. More importantly who is at risk here is as yet an unknown. Already in the space of three short weeks, we are seeing mining companies in trouble as a result of margin calls. Expect to see more. These are the early casualties in a market that never should have existed in the first place and in reality did not, except of course on paper. Given the international - ness of the gold market there is no lender of last resort for gold, regardless of what Mr. Greenspan, or Mr. ECB, or Mr. BOE, will tell you. All the players in this paper market are at risk, and in fact were at risk the moment the made their first foray into it. The extent and ramifications of that risk will become clear over the next several months but it carries far greater implications than most commentators are aware of. Eventually free market forces will have their way, but not until the participants (regardless of who they are) are cleaned out to such a degree that they finally become aware of the fact that a), they screwed up in the first place, b) there is no way out, c) they work through their apparent fall back positions and d) they end up with what they started with, - worthless pieces of paper. Currently most aspects of the gold market (one notable exception being ownership to physical metal purchased prior to this latest rise in price) including gold stocks are at best a pool of very muddied waters and will remain so until this artificial paper gold market ceases to exist and we are some time away from that event. Instead, expect the market players to continue to use paper to try and retrieve the situation. Professor von Braun can be contacted via email at profvonb@aol.com <mailto:profvonb@aol.com> [Return to the Fiend's SuperBear Page] <http://www.fiendbear.com/index.html> fiendbear.com