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

To: teevee who wrote (42617)	10/10/1999 5:38:00 PM
From: Tunica Albuginea	Respond to of 116764

teevee, good post but a "little" catch: Japan Japan is the wild card here. Question:How long for Gold to become oversold by Banks to mines? Answer: As long as it will take for Japan to buy our printed money( aka: "Treasury Bonds " ) and scoop up, again, our inflationary, printed-poop. ( unbacked ,if I may say, by GOLD ) Same thing that Japan has been doing for 15 years!!> The key to POG is Japan and oil, because we do not control them. If oil stays up and Japan refuses to buy our Bonds, correctly so, because unlike the 1980 to 1998 Bond Bull market, with the Fed raising interest rates, Bond prices will tank. Why would Japan want to buy Tanking US Bonds??. This is not 1982 when interest rates were 12% going to 4% and Bond prices were dirt cheap going to sly high. Japan was smart and they bought. Now they are equally smart and Bank of Japan says: " My friend your bonds are about to tank, why should I buy? They will not. Not for another 6 months, until the US Guv+Fed+Congress control spending, lower interest rates to allow for the Bond to come back up. Can you see Bill Clinton + Democrats+Republicans agreeing on anything? Relax teevee, buy good gold stocks, put them in a drawer for 3-4 months and then sell them. As they say:" You'll make a mint", TA ( Of course if " Billy and the boyz in Congress " in Congress don't agree in next 6 months then you should hold gold even longer; all IMHO. ) Message #42617 from teevee at Oct 10 1999 5:11PM Hutch, Could it be that the very same 15 European banks that announced they are curtailing gold sales also have been the largest gold leasers to mining companies and hedge funds:-)) These same banks will probably sell to the hedge funds and mining companies the gold they need to buy to repay their gold loans. It appears to be a zero sum game, other than lease fees-the hedge funds have to buy to get back onside margin requirements and the mining companies have to buy because they can't produce fast enough to cover by delivering. The central and commercial banks end up doing a whole lot better that just earning the lease rate on the gold they lent to hedge funds and mining companies who forward sold:-))So how long do you think it will take before the market is overbought before the downward trend is resumed(probably hard to judge when the central and commercial bank gold supply is elastic/managed/rigged in order to maintain confidence in "coin of the realm" eh:-))? It appears that central and commercial banks do make a return on their gold bullion over and above lease rates, and regardless of which direction the price moves, afterall:-)) regards, teevee