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

To: Enigma who wrote (57319)	8/14/2000 3:07:02 PM
From: Ken Benes	Read Replies (1) \| Respond to of 116922

Profound. Try thinking of something innovative, producers closing high cost mines and purchasing gold from the cb's, forcing them to make good delivery. It is a better alternative than their proxies buying and selling paper gold within a non threatening price range and the miners would make more money. It would help the producers sterling balance sheets you are always talking about. Ken

To: Enigma who wrote (57319)	8/14/2000 4:01:08 PM
From: Zardoz	Read Replies (2) \| Respond to of 116922

Rons' comment: How much of the world's gold supply is held in the vaults of Central Banks and not available in the physical market? Sounds like a subsidy to me. Enigmas' comment: Yes but it's an important distinction. Also to say that gold is subsidized because the CBs don't step up and sell all their gold - or more of it - ignores the fact that the situation hasn't changed essentially for decades. Since countries can create the currency at will, then anytime they produce a Dollar and buy Gold to hold as a reserve asset; then they are creating a subsidy for the producers because it is an artificial manipulation of the demand supply equations. To suggest that holding such supply of gold for years somehow negates such action suggest that the selling of the same is having no effect. Nowhere does the selling of gold mean that they are loosing control of your currency. And although loans between countries are sometimes done with GOLD, those loans are by no means more effective then lending the actual currencies. In deed maybe lending a currency like the SDR {IMF buxs} would be better for most countries because that would have the effect of driving other currencies in correlation to your own. Hutch