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

To: ahhaha who wrote (70053)	5/22/2001 10:22:27 PM
From: teevee	Respond to of 116764

*What the Fed is doing is in direct contradiction of the way free markets are supposed to work, probably contrary to the charter of the Fed - and definitely very dangerous.* You just don't get it do you? Part of Greenspan's job description is to maintain supremacy of and (international)confidence in the almighty US dollah....and if the Federal Reserve has to sell every last ounce of gold from the Federal Reserve to do it, it will be done. There...now you know why the move up in the POG was extinguished. If you are old enough, you might remember that after the run to $800 in the early '80's, the central banks of the G-7 formed and announced policy with respect to gold. They agreed that they all would sell as much gold as it takes, whenever fears of inflation pushed up the POG, in order to maintain confidence in the "coin of the realm" and the economic "system". With the equivalent of 50 years annual gold production in central bank vaults, "pissing on the fire" isn't a problem:-)) As an aside, during the run up to $800/ounce, the only vehicle for investment in gold was to buy the metal in coins or bars. Part of the response by the G-7 governments in order to commoditize gold was to deregulate the price, take currencies off the gold standard and permit and encourage the implimentation of gold trading vehicles such as futures, options and the lending and leasing of gold by private banks. Until, the gold held by all central banks is finally sold, the specter of central bank sales in times of inflation or anticipated inflation such as we are now experiencing, gold will never trade as other commodities do in relation to supply and demand. IMO, the sooner that banks quit buying gold on demand from producers, and selling into the market during times of economic unrest and uncertainty, the better. Lets let the market place determine the price. cheers, teevee