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

To: Crimson Ghost who wrote (63916)	2/17/2001 5:57:44 PM
From: Zeev Hed	Read Replies (4) \| Respond to of 116763

George, is not CB leasing gold out in actuality a sale of that gold? I think that GATA is right in one respect, there is a conspiracy to cap the price of gold, and various instruments are used by CB to that effect. Since gold is a commodity like any other, it is priced at the margin, and while typically only 400 tons are sold in a given year, it is simply because more sales will depress the price more than the CB's want that price depressed. If for one reason or another, real shortage in gold might develop due to the constant "creep" in gold demand which at a given time might not be matched by increased supply, the CB's will get back to Washington and change the Agreement. Congress might even finally allow some of the Fort Knox gold (if memory serves some 7000 to 8000 tonnes?) to be sold. Like any other commodity, gold price will put in a bottom when capacity shut downs due to low prices will cause it. The same process has been in force now for some time in aluminum, including an unusual agreement, a cartel in essence, with the Russian not to dump their excess capacity, at ;least, not yet. (g). Enjoy the coming short term rally. Zeev

To: Crimson Ghost who wrote (63916)	2/17/2001 6:29:44 PM
From: lorne	Read Replies (1) \| Respond to of 116763

Metal-go-round sends gold into spin Saturday, February 17, 2001 Gold prices trading near their lowest level in 22 years may decline further as producers sell the metal at a time when the strong US dollar was crimping demand, analysts said. Gold for April delivery yesterday fell $US4.30, or 1.66 per cent, to $US256.90 an ounce, its lowest closing price since September 20, 1999. It slumped as low as $US253.20 in July 1999, its lowest level since May 1979. Meanwhile, mining companies have been borrowing metal from banks and selling it, hoping to repay the loans with less-costly supplies from future output. The global decline was reflected in the ASX index of gold shares, which fell to its lowest level since December 4. Lihir Gold fell almost 2¢, or 3.5 per cent to 55¢. smh.com.au