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

To: Richard Mazzarella who wrote (62685)	1/15/2001 4:23:36 PM
From: long-gone	Read Replies (1) \| Respond to of 116764

<<Currently the central banks have more than enough supply to meet demand for a number of years>> Most believe no can really know if this is true or not as the central banks still carry it on their books even if on loan.

To: Richard Mazzarella who wrote (62685)	1/15/2001 6:35:35 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 116764

<Claude, not sure I agree. > I respect this. <Gold was money, but today it's nothing more than a commodity IMO> Than why central banks still hold gold as a reserve asset. Why is the Euro backed by 15% gold? Why is Robert Mundell, 1999 Nobel Prize Economic, is now pushing a world currency that could be named, as he said, "intor" or "unor" where the suffix "or" is the french translation for gold. This worlwide currency would also be backed buy gold. Why did Allan Greenspan said: "Gold still represents the ultimate form of payment in the world". And why does more than 2 trillions dollars worth of gold change hand each year on the LBMA market? Also why are digital gold currencies popping here and there with the backing of strong institutions ? I can't see how gold can be considered as a commodity and nothing else. <Why should anyone buy gold at any premium when they can get it at a discount buying CEF? > Well agreed...CEF sells at a discount. But it always sells at a discount. Rarely selling at a premium to gold exchnage rates. BTW, Did you know that Central Group, managers of CEF, are also escrow agent for the first and most important of the gold currencies. Gold currencies are a lot more flexible. You can buy things with them like you would with US dollars. You can pay bills, save them. <PMs must find new demand to improve price. > The demand will come from people who use and buy money. The Internet has made possible the use of gold as private money Gold bars can now be fractioned in digital units and used in electronic payments . It is happening now. Slowly, but surely. <Currently the central banks have more than enough supply to meet demand for a number of years, they lower the price the more they sell.> Not exactly true. Many gold market experts are saying that central banks have leased a lot of their gold. And there are only a few thousands tons left for sale. The annual deficit is digging into those supplies every year to the tone of 500 to 1000 tons a year. <The secret for improvement in PM prices is to increase demand> Or a reduction in supply. I am sure that you have heard of the gold carry trade putting pressure on gold prices. Well with the current state of the US economy and the new trend in USD exchange rates... I doubt that the participant in this carry trade game will be there for very long.