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

To: goldsheet who wrote (81667)	2/6/2002 3:55:47 PM
From: long-gone	Read Replies (1) \| Respond to of 116811

I hear that "in & out" can be good but can cost money or provide money - depending which side of the transaction your on.

To: goldsheet who wrote (81667)	2/7/2002 8:38:41 AM
From: long-gone	Read Replies (2) \| Respond to of 116811

Business Week HAS GOLD LOST ITS LUSTER FOR GOOD? Inflation's demise--and huge state sales--scare off the bugs Soon after the stock market crash of 1987, gold soared to nearly $500 an ounce. Three years later, during the gulf war, another market crisis and another rally in gold. Today, all the ingredients are there for another crisis-driven gold boom--the market shock of Oct. 27 and its aftermath, and a renewal of tensions in the gulf. Yet gold has been a dud--barely budging from its dozen-year low of $309 an ounce. The slide in gold prices has tolled the death knell for one of the financial world's long-teetering axioms--that gold glows in periods of distress. Indeed, the failure of gold to rise as stock markets tanked may mean that gold is in a bear market that may get even worse. For one thing, inflation is pretty much out of the picture. So for investors and central banks alike, just about the only gold that makes sense nowadays is implanted in their molars. ''Gold has lost its magic for many people and many governments,'' says Dale W. Henderson, a Federal Reserve Board economist. One factor that has put particular pressure on prices is the wholesale dumping of gold from the vaults of a host of nations. Since 1989, governments have sold some 64 million ounces of gold, worth some $25 billion. Just last year, the Netherlands sold 10 million ounces, a full third of its hoard. Instead of counting on gold to back their currencies during fiscal distress, these governments are relying on their economies and their holdings in the U.S. dollar--a sensible choice, in the view of Henderson and other economists. The gold-selling mania has swept across the globe. In the last couple of years, Belgium and the Netherlands--perhaps gearing up for the switch to a European central bank--have been heavy sellers. So has Australia. And Switzerland roiled the markets by floating a proposal on Oct. 24 to sell more than half its gold holdings--equivalent to roughly 60% of the annual production of the world's gold mines.(cont) By Joseph Weber in Toronto businessweek.com@@4WZJy4cASJ*2SwAA/1997/47/b3554167.htm