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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (10450)	2/8/2001 5:05:39 AM
From: d:oug	Read Replies (1) \| Respond to of 81226

Searle, Question: If the mine workers union that cheers uncle bill would tell its members to all stop mining the gold until those fat cats bill speaks about,... ... those that are sucking the life blood from South Africa so that once their gold mining industry collapses they can come in and take over, cry uncle bill to stop, then would this work in a similiar manner like if the Middle East oil workers stopped pumping? I realize that oil is needed, unlike the physical gold, but just might the mention of a possible "work stopage" by the gold mine union cause a possible short squeeze? We all know uncle bill has zero control over those he is fighting, and very limited leverage over any gold producer's management, but the workers are at the bottom where crap flow down-to and they most likely have no warm & fuzzyness towards the bankers and upper management of the gold producer. This could happen as a rumor, a nation wide strike, and if so things might both change very quickly as in "forget yesterday, todays a new ball game." Imagine, uncle bill & the hard laboring workers might do in a single day what gata etc has so far been unable to make more than a small dent. doug

To: sea_urchin who wrote (10450)	2/8/2001 1:35:42 PM
From: goldsheet	Read Replies (1) \| Respond to of 81226

The way the mining business works actually makes sense to me. Folks that can't believe it or accept it have had great difficulties over the last five years. Here's my most recent GPM summary: "Firms tend to do what they think is in their own best interest, not what benefits the industry. Therefore, as long as the mines are profitable they will continue to produce as much gold as efficiently as they can. This industry remains way too fragmented for anything like a cartel with the ability to set prices. Metal miners must take the price consumers are willing to pay in the commodity market, or a little bit more if they have hedged successfully. I'm sorry if I sound redundant to the regulars with my focus on supply/demand numbers but just because production rises due the higher prices does not automatically means that production goes down when prices drop. The time lag is long - we are five years past the price peak and primary mine production is just starting to go flat. The industry is just too capital intensive to walk away from projects that cost hundreds of million to billions of dollars. As long as cash flow remains positive production continues, which means all the way down to cash cost per ounce. " REF: Message 15320085