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

To: Crimson Ghost who wrote (68045)	4/21/2001 9:59:25 PM
From: E. Charters	Respond to of 116762

I disagree on consolidation. I distrust pure bigger-is- better. No single mine can make more money during low Gold prices. Buying and closing is just a way for bargain hunters to lock in future production ramp-ups. People like Schulich (Franco Nevada) and the Big Gold producers are for it, as they smell bargains. They must also smell a higher price, as some of Seymour's friends in Europe may have something to do with Gold price control. It was their selling forward that helped drive the price of Gold down as it encouraged massive shorting to offset the higher forward buy prices. The derivative spin is what put the pressure on Gold. Borrowed Gold to finance buying forward had to be sold immediately to pay the miner and straddled with derivative instruments to offset the risk of a higher future price. The highest profit was made if the Gold price fell between then and when the miner delivered. Most large Gold sale announcements are just the lock-in of the sale of that Gold that took place to finance forward buys months before. The banks co-operate with their friends who borrow it and drive the price down in this manner to close the short at advantageous prices. It is strange that they never announce the delivery or non delivery of the gold by the miner as a payback or writedown of a loan. It is always a gold sale. They never announce someone bought 400 tons just that they are going to sell it. If they told the truth they would say they already did. Consolidation is not a panic, or a bad-weather thing. It is a carefully planned strategy of shrewd big gold people who are versed at predicting Gold's moves. For my part I like small high grade mines that are insulated from the price of Gold. There are several examples here that could be taken advantage of. EC<:-}