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

To: marek_wojna who wrote (68846)	5/8/2001 2:43:28 PM
From: E. Charters	Read Replies (3) \| Respond to of 116756

We are producing way more gold than we used to in the 70's or even the 80's. (About double) If all the producers got together in a biggie conference and decided to cut way back on production, they could drive the price up substantially and save on costs. Basically we need to produce about 1/2 the gold we do now for the next 4 years. This will allow continuous mining of older mines and the later mining of lower grade ores as the price rises. As we cut back the Russians will gear up so this will bollix it a bit. There would be some pain for long term gain. (Canada has only 34 tons of gold reserves this is less than 4 months production.) Then producers could also set up their own markets that do not sell forward as this two tier price structure creates too much incentive to re-short to make money. Since Banks and gov'ts are abandoning gold the "average guy" will have to buy it. This is eminently possible, as they buy most of the output now for jewelry, so buying the remaining 30% for monetary or hoarding purposes is not out of the question at all. The internet could set up ad hoc gold trading apparati that uses stored gold to make gold cerificates that are electronically traded. With asymmetric public-domain program code-signatures, these documents could be totally secure and easy to publically check. As secure as bank notes any day. I could have 40 ounces in my basement notarized by a trust agent, and use a third party's secure electronic certificates for trade, set up by receipt of the notarization. You need three things. 1. A gold depository agent who agrees to deliver units or partial units on demand, to an unforgeable electronic receipt-of-debt, 2. a notarization agent (could be the depository agent) who assures the software agent of ownership of the gold and 3. an accounting agreement between the depository agent and the software agent to track transfer of units of gold to your payees. (This could be blind as in acknowledging of receipts but there is no reason it could not be active, as in notification of debt electronically. In other words, you ask the depo agent/software agent directly to pay the transferee. Either way it works and in a sense it should be done both ways at once.) With internet transactions it begs the need for third party clearing houses to make the transfer of goods and certificates, as the matter of trust is a known problem. E-Bay has worked it out quite adequately though. Partial units say, smaller than one 1/100 ounce could be made up in gov't specie, or coin. When a transfer is made by secure PK code to a payee, then the receiver registers his receipt by sending the message to your software agent or the depository agent, if they are the same. Your private code signature and transaction number decodes that it is indeed a proper genuine pay to the receiver. This cannot be forged. He may elect (90% of the time) to allow the credit to remain with the depo agent or software agent or he may take receipt of the gold. He can additionally ask for a paper copy, bar coded of the deposit information. When he gets that, it credits him (to his name) in writing, watermarked on bond paper, with so many units on deposit with such and such an agent. It has the private key signature of the software agent at this time since he is the new communicator of the debt instrument, not yourself. I suppose the receiver could ask for street name certificates if such became popular, at a window, but I would not mail these out. Mailing the gold would not be such a good idea either. What it amounts to is a transferable share in the gold on deposit. It is in his name on paper so that it cannot easily be transferred or stolen. When it is electronically transferred of course it is wrapped in his public code so it cannot be stolen. EC<:-}