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

To: Richard Mazzarella who wrote (62691)	1/15/2001 7:51:41 PM
From: goldsheet	Respond to of 116764

> <<CEF>><<it always sells at a discount>> Isn't that just a case of the trend, discount on decline, premium on an uptrend? CEF used to trade very close to NAV (often +1% to -2%) but seems to have trended to a wider discount over the years cefa.com Discount is currently 7.5% but got to over 18% last year.

To: Richard Mazzarella who wrote (62691)	1/16/2001 12:37:51 AM
From: Claude Cormier	Read Replies (2) \| Respond to of 116764

Claude, <<Than why central banks still hold gold as a reserve asset.>> Isn't that simply the banks protecting their current assets? Some are possibly doing it. But others are holding tight. <Isn't that just a case of the trend, discount on decline, premium on an uptrend?> No. I think that even on uptrend, CEF has sold at a discount. <Irrespective of all the manipulation talk, I still believe in markets where supply and demand rules, as in any commodity> Supply and demand always rules. The question is what are the sources of all these supplies? Barrick alone has dumped 13 millions tons on the market.. that is more than 425 tons. I know that sale forward are a zero sum game in the end. But the sales do put pressure on the market at some point in time. When you think that Barrick is less than 4% of the gold supplied by the producers, you can figure out how many tons have been dumped like that. That is artificial supply that will eventually disapear either when gold prices are too low or when there is no more old to lease. <To consider PMs as anything more than a commodity makes investment decisions issues of faith, not logic. > It has nothing to do with faith or logic, it is reality. Gold is money. It has survived the passage of time. It is the only currency that has done so. Your $10 bill will continue to lose purchasing power in the years and decades ahead. Not so with a gram of gold. And since you can now do the same thing with gold that you do with a US dollar and more...there are no longer any good reasons to own paper currencies. C