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 : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (75381)	10/3/2000 10:00:35 AM
From: diana g	Respond to of 95453

<<<Off Topic-- Gold-the 'Missing Bars?'<G> >>> Slider, I've got to admit the leverage situation wrt mining/POG is interesting. Assuming the previously noted production shortfall is real, and causes a rise in POG to $325. And that there aren't other factors not taken into account that make the situation different than the historical leveraged rise in the miners you describe. But irt that production shortfall causing a POG rise, there is a factor you don't mention, and that is ----- <<<<<drumroll here>>>>>> THE WALL OF BARS Unlike the 'Paper Barrels', the 'Wall Of Bars' is very real. A whole lot of gold bars are stacked in various vaults, and the production shortfall could easily be made up for many years by any one of a number of entities deciding to sell a very small part of that gold. A lot of what you've posted irt gold is thought-provoking and the POG rise into the $300s predicted is possible. But the weak link in gold-bull thinking imho is the basic belief that gold has some mystical value. CB's aren't going to return to the gold standard. The 'Wall Of Bars' would be more than adequate for all gold needs until long after everyone here's great-grandchildren have children. Gold's Not Oil. Nobody needs it. The comparisons with oil TA just aren't valid, imho. But the idea that a small rise in the POG might be leveraged in the miners sounds plausible. Good luck with it. regards, diana