Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ken Benes who wrote (54340)	6/14/2000 9:49:00 PM
From: Hawkmoon	Respond to of 116768

Rarely, do you see such a resounding indictment of a sector and the management of the companies that comprise a group. Hope you don't mind if I say that I agree with you... :0) However, on the other hand, I think the miners realize that the global economic fundamentals, at least in the US, do not provide a promising environment for sustainable moves in the POG. Thus, the skepticism that surrounds the market, as traders anticipate that even more hedging may take place as miners lock in some profits and then take the price down were more demand will surface. And then they will do it all over again. A slowing US economy with no discernible hyperinflation (which is really what gold requires to off-set the benefit of inflation-indexed bonds), means that demand for gold jewelry will decline, especially if prices rise. Besides, it is in the best interests of the major producers to prevent the small fry juniors from being able to make a buck or too. After some time they will be able to acquire their operations at fire-sale prices, thus increasing their market power. It's what I would do, were I in their place. Regards, Ron