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

To: Ken Benes who wrote (54928)	6/22/2000 9:22:00 PM
From: PaulM	Respond to of 116764

While the issues you raise certainly should affect the price of gold, at this stage, I think the primary issue is the global politics of the dollar. An even a modest return to equilibrium in currency markets will reveal the structural problems in the "gold market," which won't do well if prices or lease rates go higher, even a little higher. (I put "gold market" in quotes because it's misleading to think of this in terms of just producers and consumers; supply and demand etc.; in many countries with an affinity for gold, gold buying is restricted, China for example, and mines are forced to sell to the central bank at a fixed price; in other countries, there is a free market and an affinity for gold but little purchasing power because of weakness of the local currency; in still others, there is a free market a lots of purchasing power, but inflation of paper assets makes gold unattractive; these conditions are no accident; they are the result of degree US dominance and global coordination that apears to be coming apart at the seams).