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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (2729)	5/15/2002 3:17:00 PM
From: russet	Read Replies (1) \| Respond to of 3558

Did the government manipulate gold to keep interest rates down to make it appear they there was no inflation ? -OR- was the economy robust enough that it kept interest rates and inflation down, which was reflected in a high dollar and lower gold prices ? -AND- Expanding on the your last point,...is the POG at any moment really dependent on what the market (particularly speculators) think the supply and demand interplay for the metal will be in the near future, allowing for the fact that some short term demand may come from the hysterical? Using supply and demand considerations, the current rise in the POG could be related to,... Supply currently constrained somewhat by the Washington agreement on Central bank selling (reverse manipulation by those bad governments??), lack of money available for exploration and development either from mining companies profits or share issues due to the many factors that have lowered company profitability in the last few years and stopped the markets from lending to miners (they can't all have management like Barrick's(gggggggg)), length of time needed in many countries to develop new supply, and companies choosing to proceed with only the cheapest to develop and lowest cost to mine and process projects. Complemented by,.... Demand artificially increased recently by the bubbles in stock market and now real estate leading to the "wealth effect" on consumer demand (lots of people buying luxury items because they feel wealthy on paper) plus temporary buying by people in nations with economic or political problems like Argentina, Japan and the Middle East and the deacceleration of hedging programs by producers as the POG rises(positive reinforcement until POG levels off). Your last point about strong mine supply makes sense to me,...the increase in POG is causing the mining companies to dust off a lot of projects to consider for development, and exploration budgets are being increased, and a lot of technological innovations are decreasing costs for exploration (and increasing detection of mineralization) resulting in a sharp increase in prospective exploration ground and technological advancements in mining and processing are leading to lower lead times and costs to construct mines and operate them. Demand for gold may also be peaking as the sharp edge of geopolitical crises ebb, speculators lose interest with declining upward momentum, and the wealth effect runs it's course (interest rate watch). Nice to talk about gold without invoking the need for shadowy conspiratorial theories and/or aliens flying down to steal our gold (ggggggggggg) Downloaded that excel software but haven't got the chance to use it yet,...thanks for your help Bob.