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

To: long-gone who wrote (88356)	7/26/2002 3:26:59 PM
From: Real Man	Read Replies (1) \| Respond to of 116786

Activities in gold and dollar in the last several days qualify for Fed-lead pre-crash bounce for the USD. Typically, the CB of troubles currency starts selling reserves to defend that currency. This intervention results in a bounce prior to the crash of the currency when CB intervention fails. We sure live at some interesting times! Note how they can't get stocks up. 8000 tonnes bomb on gold will for sure kill it. But dollar will get killed too. I wonder why they are dropping it on the market instead of using it as the ballance of trade payment with a European CB. If the dollar mini-rally fails here, it will enter a free fall.

To: long-gone who wrote (88356)	7/26/2002 3:55:08 PM
From: goldsheet	Respond to of 116786

Reserves are often only restated annually (seldom quarterly). As a result, they often use average prices and lag on the way down and on the way up. "Most" firms probably have reserves stated around $300, with a few at $275 or $325. RSA accounting standards are very different, so Harmony reserves last year (June 30, 2001) were based on a gold price of $262 (off the top of my head) and are obviously higher this year. I expect all RSA firms to restate reserves upward as their fiscal year ends on June 30. Australian firms often have year ending June 30th, but their reserves are probably stated at close to current market prices. Meanwhile, we have until December 31st to see what gold does and what North American firms do.