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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Alan Whirlwind who wrote (14973)	7/27/2002 12:17:44 PM
From: sea_urchin	Read Replies (1) \| Respond to of 82340

Al >I see a 297 level before this is over Where are you looking? Do you have a crystal ball? Or are you just gazing into a pit privy? >....someone pointed out on one of these messageboards that in 1929/early '30's, gold stocks initially fell with other stocks before establishing themselves. People forget that the financial status of gold has changed now as compared with the 1930s. Today, the principal use of gold is for jewellery, back then it was an important reserve currency, a hedge against various devaluations and a major store of value. Also, people seem to forget that, if gold is anything these days, it's a commodity. Therefore, demand for it falls as the price rises, particularly in the East. Another problem is as the gold price rises mine production increases enormously as previously unpayable "reserves" now become minable. That's the big attraction of high cost producers like DROOY and HGMCY. The big speculation for gold, these days, is the belief that, if POG can get above $330, or thereabouts, all the shorts will be cornered and all the bullion banks will go insolvent. When that transpires, the gold price will go into the 1000s and all the bad guys (Greenspan, Goldman Sachs, Morgan Stanley etc) will go to jail or jump off buildings. I can't bring myself to accept it will be as easy as that and I think a major use of gold these days must be to provide something very exciting for old men to talk about on the internet, when they are not discussing their prostate troubles and Parkinson's, that is.