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

To: Robert Dirks who wrote (43769)	10/25/1999 9:19:00 AM
From: Ken Benes	Read Replies (2) \| Respond to of 116756

Making gold available for leasing represents one side of a possible gold derivative. The othe side should come from a producer looking to sell forward. It will be interesting who steps forward to borrow the gold from Kuwait and then sell it on the open market, guaranteeing the gold against future production. A more fortuitous outcome, a consortium of producers step forward and offer to buy the gold outright to either sell at a future date or cover other short positions. I doubt the producers will step forward to purchase the gold, it is looking as if the producers themselves do not want the price of gold to rise. A week ago, GATA suggested some block buster news about an agreement to limit production coming out of the Denver meeting. Never happened. The only block buster news was the Kuwait decision to transfer gold, which definitely helped the retracement in price. Well it looks as if we are back to the ho hum days. I have a question. If you can loose money when gold goes down, but you cannot make money when gold goes up, what is the sense in owning the gold producers. If you believe gold is going to rise, it appears that bullion in some shape/form is the alternative. It is time to throw the shares back at the producers with the message, if you do not represent the shareholder and they don't, then sell my shares to management who believe they own the companies for their own benefit. Ken

To: Robert Dirks who wrote (43769)	10/25/1999 9:21:00 AM
From: tyc:>	Read Replies (4) \| Respond to of 116756

I believe the strength of today's stock markets represents a huge vote of confidence in the world's central banks whose policies are to maintain a sustainable rate of growth in world economies. Don't fight the fed..... And don't fight the other powers that have proven their abilities to keep a tight rein on currency (and gold) prices. Last week in Denver an officer of Placer Dome said that when you include ALL costs including exploration, the true cost of gold needed a price very much higher than the current one. (I think he mentioned $400 +). That being so, why would anyone want to buy the shares of gold-mining companies ? Why would anyone feel bullish on the price of gold ? When you are reliant on market prices, the MARKET represents the only true reality. Currencies (and I include gold in this category) should be only a tool to facilitate the achievement of the economic goals of sustainable growth. Physical gold is required to make jewellery. Most of the other gold is held in depositories such as the Bank of England.... and it doesn't move from there even when nominal ownership changes. All this "lending" is just paper.... Are you expecting a "run on the banks" in which the owners of the gold demand to take physical possession of their gold ? In such a situation, don't you think that the Central Banks would quickly review their options ?