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

To: Enigma who wrote (43642)	10/23/1999 3:53:00 PM
From: The Barracuda™	Read Replies (1) \| Respond to of 116756

You want to see panic? Just wait until the BOE auction is oversubscribed. This inspite of another 79 tonnes of Kuwaiti gold hitting the lease market. Will the market shorts realize there is another 79 tons shorted? Will they realize that the additional 79 tonnes is bullish and not bearish?

To: Enigma who wrote (43642)	10/23/1999 9:51:00 PM
From: ahhaha	Respond to of 116756

Some covering has been done as you know. The degree that you expect hasn't occurred yet because in spite of all the dancing around the factors supposedly significant enough to substantially advance the price of gold, there isn't any perceived imminent need to cover. Short covering does not establish a trend. There has to be a reason to expect that gold will rise at least a $100/oz. to get the action you expect. The hedgers are hoping to ride out the recent change in weather. I believe there are two developments which could bring about a scramble to cover and then a sustained uptrend: war and structural inflation. We don't have structural inflation yet. The evidence that it has arrived will be seen in your own psychology. Currently, you aren't buying questionably necessary things now to beat rising prices later. You are indifferent. The economic slack which has come from 20 years of intrinsic deflation is disappearing. It will end when business can no longer absorb rising marginal costs. We are near to that now. Business then tries to pass the costs by raising prices. Depending on the degree of wealth accrued during the expansion out of sustained mild depression the public will accept or reject the increases. If they accept them, then labor will have to raise its demands for compensation and then you have the material cause of structural inflation and the wage price spiral. Presumably FED can't let that go down, but circumstances can arise which precludes them from contravention. If war breaks out between some of the many significant adversaries world wide like India-Pakistan, Iraq-West, China-Japan, Venezuela-Columbia, Germany-France, Koreas, FED won't be able to tighten and fear will cause gold to jump. The inability of the FED to act would rapidly confirm an unavoidable inflation. The psychology would dramatically change and all the bad behavior you expect is lurking would show its ugly face. Right now do you feel an imminent need to cover ex the prejudices you have accumulated being near to the ballroom? All the reasons discussed on this thread for gold's rise aren't sufficient. There has to be real concern and it doesn't exist now. The hedgers are just leaning on the persistence of this psychology. They are making the unwarranted assumption that trouble isn't near. Just about everyone on this thread disagrees. We all sense something evil this way comes, but we don't have anything more than a premonition. Oh, your question. What do you mean by "technical"?