Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Greg Ford who wrote (66629)	3/28/2001 9:34:15 AM
From: russwinter	Read Replies (1) \| Respond to of 116788

<we will need to see a reduction in mine supply> We will see some (I predict 2% this year, and another 3% in 2002) reduction in mining supply. We have already seen a reduction in "accelerated supply", or new hedging in excess of current deliveries. Central bank sales are at predictable and reasonable levels. Those factors are less of a factor depressing POG today than most assume. The most important variables are demand which might be threatened by a major global recession. Other than a brief dip in the major market for gold (India) has anyone seen real evidence of demand slippage? I haven't, but there may be justifiable concern? It's a wild card, but so is increased demand from US dollar capital flight, a currency that is in levitation. I see the odds favoring the later. That leaves only one huge player to close the supply/demand gap: speculators on the short side and the carry trade. IMO that's the ball you follow to determine odds for a sustainable gold rally above 285. If they throw a hanging curve ball (and I think they will), it will be hit out of the park.

To: Greg Ford who wrote (66629)	3/28/2001 10:20:28 AM
From: marek_wojna	Respond to of 116788

<< Why should gold move higher....>> Why the stock moved higher? Are the earnings suddenly now so huge? Or maybe some new economist came to power and decided that since now on PE. for the old economy should be 30, and for new 300. Next week we can double if there is enough buyers. Same applies to any paper. So easy to manipulate the real value. The gold is too hard too manipulate, the rulers have to put on market real value which even the child can measure. My prediction regarding POG is based strictly on psychological aspect of human nature. Information highway is a very nice tool, but like any stick it has two ends.