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

To: russwinter who wrote (48075)	2/5/2000 11:01:00 AM
From: The Barracuda™	Read Replies (1) \| Respond to of 116898

From the USA Gold site: Black Blade (02/04/00; 05:36:06MDT - Msg ID:24276) Rhodium races higher, trades above $2,300 This just in! Not even a gram available! hmmmm....... LONDON, Feb 4 (Reuters) - Rhodium prices were firm on Friday in Europe, with spot metal jumping to $2,300/$2,425 an ounce, up some $250 from Thursday and its highest since September 1992. Traders said a potent cocktail of a lack of spot metal, panic consumer demand and the strength of all the platinum group metals (PGMs) pushed a thin rhodium market higher. Traders said rhodium had changed hands at $2,300 an ounce and above this morning. "It is soaring again...there is just no supply and the consumers are panicking," a trader said. Rhodium, used with platinum in the production of autocatalysts for cleaning motor exhaust fumes, is being driven higher by short supply. "It is red-hot and there is nothing in Tokyo, not even a gram," another trader said. Japanese usage in catalysts is increasing, borrowed metal is not being returned to the market, and major producer Russia is not supplying metal, traders said

To: russwinter who wrote (48075)	2/5/2000 11:14:00 AM
From: Ken Benes	Read Replies (1) \| Respond to of 116898

"However, I'm not as optimistic on this as the rest of the bullish equation, for the simple reason that the industry is financially weak" I agree, however, after the initial rise in the pog, the price is going to have to be supported. Otherwise, demand will dry up and the price will retreat as it did in the 4th quarter. One other point, some of the producers have engaged in leasing gold and then selling it into the market, profiting on the differential between the lease rates and the return on the bonds that they procured with the proceeds of the sale. Much of this activity took place last year with bond yields at their lowest levels in 30 years. Many of those trades are underwater with the recent rise in bond yields. If this in fact the case, producers engaging in leasing/forward sales may be unable to close out their positions. If you are correct, that the producers will be unable to support the price, we are probably looking at another failed rally. Demand will dry up as the price of gold rises. Dump 100 tonnes of cb gold into the market at the point of low demand, kaplunk goes the price. I continue to believe another external factor will be the catalyst for +350 gold. Turmoil in the bond market could be it. I am waiting for the trade numbers this month, at some point 30 billion dollar monthly gaps are going to matter. Ken