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

To: Enigma who wrote (44686)	11/7/1999 11:24:00 AM
From: tyc:>	Read Replies (1) \| Respond to of 116762

You say: "A superficial reading. You have to be more selective - no two companies are alike. The XAU is most likely low because of numerous assertions like yours - the easy course is to accept the conventional wisdom d" Would you please expand on your judgment. ? Why just "superficial" ? ..Don't you think that playing gold on the short side, being short millions of ounces, limits profits on the upside ? ..don't you think that the act of shorting this gold in the name of "hedging" might be assisting the decline in price ? ..And don't you think this may detract from the speculative interest in gold company shares ? It is the perception of the INDUSTRY and its practices, that counts; not the actions of any one company. In my mind "hedging" has become a significant feature of the industry. It limits the upside potential of gold by satisfying any increases in marginal demand that otherwise would result in an increase in price. How many gold companies took advantage of the recent spike in price to increase their forward sales ? The apparent failure of that rally appears to have done much to diminish speculative interest. I sincerely wish someone could explain why this view is "superficial". The suggestion that the mere voicing of a superficial judgment might cause the XAU to fall is rather sobering !