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

To: long-gone who wrote (61621)	12/2/2000 1:05:16 PM
From: Daveyk	Read Replies (2) \| Respond to of 116762

gold-eagle.com The addition of Phelps Dodge, a huge copper miner, to the XAU left a baffled gold investor community. Phelps Dodge itself claims that less than 1% of its revenue is from gold and silver, which is simply a small, immaterial byproduct of its copper mining operations. Phelps Dodge's investor relations liaison has stated that the company was not consulted by the Philadelphia Stock Exchange on the decision, and Phelps Dodge itself has no idea why it is included in the XAU as a "gold mine". The mysterious addition of Phelps Dodge to the XAU made the copper miner the third most important company in the index, accounting for over 14% of its weight. Shortly after this very strange occurrence, one of the biggest and best gold mining operations in the world, Goldfields, was removed from the XAU. Many speculated the reason the stock was kicked out of the index was for Goldfields CEO Chris Thompson's strong and courageous public comments against forward selling and leasing of gold, which have been virtually proven to severely depress the price of gold. These cryptic occurrences have left a shell of an XAU that is only very loosely correlated with the performance and profitability of unhedged gold mining operations. When gold begins to rise, many casual investors will look at the now sham XAU, see it remain flat, and assume that gold mining shares are not rising in price. It really is a very clever stratagem by the gold shorting crowd, to break the most common instrument used to measure gold share performance in order to attempt to retard future investment demand as the physical metal itself begins to rise. Looking past the smoke and mirrors, this recent move to destroy the validity of the XAU is a key indicator of the levels of visceral fear and outright terror building in those who owe physical gold to others. The economics of the gold market, coupled with the increasing evidence that the gold suppression scheme is reaching vital sink or swim time, indicates all hope is virtually lost for those who foolishly decided to declare war on a critically important global free market