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

To: Richard Mazzarella who wrote (64087)	2/20/2001 9:05:57 AM
From: long-gone	Respond to of 116922

<<That all very nice, but who will be buying the gold that forces the short covering? Where’s the increased demand? >> This is the sole reason I rag so hard on CNBC(& the other "experts"). People invest their money in the market based on the info they get all to often from TV. The last couple of weeks gold mining companies have been amoung the greatest of winners. IF people get this info. they go out & buy into a precious metals mutual fund, some of these funds have a part of their holdings in BULLION! Here is one: Invesco Gold - 13.76% gold bullion Nothing like winning to keep winning.

To: Richard Mazzarella who wrote (64087)	2/20/2001 9:50:03 AM
From: russwinter	Read Replies (2) \| Respond to of 116922

Richard, I get a little perplexed about this talk of poor demand for gold. The old who will buy common dirt argument. In reality recent years demand has been pretty consistent and steady for the yellow dog. Sure there is a little ebb and flow (but mostly a tremendous amount of propaganda and misinformation). But, people still like the stuff, it has that obsessive quality about it, despite all the nonsense about it being as common as tin. The wild card on traditional demand is of course the question of investor driven buying (your new tulip argument) from the western world. If that occurred, we would would shift into an extremely strong demand picture versus just solid. The real issue is not demand, it's accelerated supply caused by extreme credit excess and speculative attacks. No commodity could have held up to a scheme to sell several years of supply into the market in a short period. And no commodity would stand up to the fact that a third of the gold reserve of the CB's has been used in giant carry trades and lord knows what and now constitutes a dubious "receivable" from a food chain of BD's and their sub-prime (if they aren't sub-prime at $255 POG, they soon will be) gold mining clients. The good news is that now we can look forward to a new powerful trend: decelerated supply, and the unraveling of this epic excess. You'll want to be on the right side of the trade when that happens. In the very short run, I think the speculators are going to drag gold kicking and screaming below the 1999 lows. Gold is still under this incredible and doomed speculative attack. It will be a very costly operation, but there is just too much propaganda value in it. Their hope is to spook a little liquidity out from whatever source they can. I predict they might succeed in the operation, but they will be the only sellers (again out of thin air). The buyers (the new pro-gold players:)will be more than happy to accommodate them.