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

To: Stephen O who wrote (72874)	7/5/2001 6:17:54 PM
From: Ken Benes	Read Replies (4) \| Respond to of 116759

Two points: First: the amount of production involved is insignificant. Second: the barrick/homestake merger is an indication of what is to come. Large gold companies with enormous production with strong ties to the bankers. The developing conglomerates will have the resources to provide the market with enough gold to satisfy demand at a specific price. Finally: prior to the creative derivatives used by the gold companies to supply additional gold to the market, the cb's had only the gold in their vaults to achieve whatever results they desired. Now that gold is leveraged by the gold in the ground held by the largest gold companies, the derivative markets can maintain a desired trading range, ie: gs and the others selling gold as the upper bands in a trading range are approached, and buying to cover their short contracts as the price falls to the lower bands. The impotent gold companies have become nothing more than an audience to this continuing saga. The bankers dictate the terms and conditions in which mines will be developed, how much gold is available to the market, etc, and the managers of the companies are either silent partners or impotent victims. The gold traders want the gold bug to become excited over this insignificant data, it insurers their ability to continue control over the gold market. Ken