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

To: Crimson Ghost who wrote (49643)	2/25/2000 8:30:00 PM
From: Ken Benes	Read Replies (3) \| Respond to of 116786

A very good note. I recognize that there are exceptions within the producers. I made the note more general as not to focus entirely on one company. Because of the lack of elasticity in the gold market, it was a given that prices above 300.00 would meet resistance. For this reason , it is untimely to announce any increase in production. The producers have an uncanny ability to shoot themselves in the foot. As the price of gold was declining, they increased supply thru forward selling putting more pressure on the pog. Now that prices are beginning to recover and forward selling has abated, some producers are increasing supply by bringing new mines on line. It is difficult to comprehend the complete lack of planning associated with this. What they should be doing is decreasing supply, which can be done with little loss of revenue. Close out existing gold loans with current production, liquidating the counterpart bonds that were associated with the loans. Many hundreds of tonnes of production can be removed from the market in this way. Instead, barrick buys calls to offset their short position and increases production, and this is supposed to be smart. You can fool some of the people some of the time, but you cannot fool all of the people all of the time. Investors have barricks number and are voting with their shares. Ken

To: Crimson Ghost who wrote (49643)	2/26/2000 3:19:00 PM
From: Rarebird	Read Replies (3) \| Respond to of 116786

<A solid gold bull requires a big rise in INVESTMENT demand. That probably will develop once US financial assets enter a sustained bear market widely recognized as such. Seems very close now.> That sounds better than the "new era", it's different this time gold bull that would be led by a rising POG you were touting a few weeks ago. Investment Demand for Gold requires a decline in the dollar. A sustained bear market in equities does not necessarily entail a decline in the dollar. Gold only rises 40% of the time in a Bear Market? Are you thinking Recession here? If not, what makes you correlate a bear market in equities with a bear market in the dollar? Can't the dollar still remain the currency of choice in a World Wide Equity Bear Market?