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

To: marek_wojna who wrote (74675)	8/8/2001 4:29:32 PM
From: E. Charters	Read Replies (1) \| Respond to of 116834

Even if gold mining was by hand you have to sell it somewhere. In fact most gold is sold for jewelry. It is bought very vigorously in Italy and India for this purpose. Depending on the country the resulting jewelry commands a premium or is sold just above the price of bullion. Asian jewelry is usually sold cheaply, reflecting its use a wealth hording mechanism, where European jewelry is sold more as art and adornment so is much above the price of gold. If you want to sell gold for bucks sell jewelry in Europe or North America. The trick is the Bank of London since long ago has set the price of gold by selling a miniscule amount. It gets this chartered status by edict and today maintains the price of gold to a degree by selling only 2500 ounces per day! Since the bank ecnourages borrowing, which they know is immediately sold, they can manipulate the price by setting the borrowing rate. If they want the price down, they lower the lease rate and more gets sold. Then the little flags get toppled in the board room on the sell side. It is as if they were setting the financial weather by setting the barometer. They do this to settle the pound. If gold got away in price the pound would weaken since it has been traditionally tied to the pound for a long time. Across the pond the NY metals market has competed in this price fixing escapade since WWII. The COMEX was setup to try to wrest control of metals from the British LME and the Rothschilds's BOL.To a large degree it has been successful in this, as the LME and some metals have been trashed again and again. But it has led with the Japanese cartels and German overproduction in South America to instability in metals of late. So the vaunted aims of COMEX have led to a shaky metal market and bankrupt producers. The precise opposite of what it should be setup for. Too much competition in control has led to a tragedy of the commons of money and production. Even if gold was a free quoted market and not a psuedo exchange as the COMEX is, it would still be low price today. If one allowed jewelers to set the price, instead of Gov't propped up dealers in New York, it would be more fair since the jewelers buy 70% of it, but there is a mining glut that exceed the 1980's production by twice. Jewelry use has increased too and so has the population and the money supply, but still the price would be shaky. In fact the sales of gold are double the production because the borrowed gold gets sold immediately! So in fact the hordes of borrowed gold sold, emptying the CB vaults, is the mechanism of shorting leading to the lowest relative price in history of the metal. The critics are right. GATA is right. It is a conspiracy to prop up the even shakier investment market, now tied to the grossly inflated US dollar, pound and Euro currencies. Trash gold and the paper looks good. For a while. We sped past a non inflationary 80's and 90's where in fact all the inflation was in company paper or stock. But the money still all left the investors hand and is up in smoke. If had been poured into gold instead it would be much better off. So the naysayers of gold's strength as store of value are wrong. As bad as the price is, it is still better than a dot com or a Nortel. EC<:-}