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

To: goldsheet who wrote (93595)	2/16/2003 12:12:16 AM
From: long-gone	Read Replies (1) \| Respond to of 116759

" but out-of-date legislation and licensing arrangements are holding it back". No talk of exports? Hmm?

To: goldsheet who wrote (93595)	2/16/2003 11:40:49 AM
From: E. Charters	Read Replies (2) \| Respond to of 116759

Coldwater Johnson strikes again. Between gold-friends, him and gold-tooter, gold does not need any enemies. Still I aver with great pontification, worth of a CW himself, that Gold is INELASTIC, at least relatively, and is somewhat immune to production boosts, or extraordinary sales. To harp on an oft repeated theme, during the 70's the IMF used to sell almost 70 tonnes each quarter and found it had no effect on the price of gold at all. Gold's inelasticity had been profoundly demonstrated during that period. Again though there were equally strong inflationary forces afoot then, so perhaps there was sufficient push from the other side to discount the sell-off. I also state with ponderificant stultified authority of the absolutely inarguability that fundamentally, gold production has fallen in the last 25 years and all events indicate it will continue to fall. No single entity can replace the gross decline in South African and Canadian production. Together these two countries produced about 950 tons per year, more than equal to what India consumes. Today that figure does not break 400 tonnes. The recent drop in gold buying in India to practically zero may have accounted for the slide in gold recently as it took 200 tons out of the market. This seems to argue against my thesis of relative inelasticity, but I said that relative, as nothing is perfectly inelastic. Yet despite a drop in real markets of perhaps 10 per cent in the quarter, gold did not drop a full 10 percent of its 50 day MA, so we can say it is preserving elasticity. A slow build in production gold may not affect gold much as it will more replace declining production than flood a market. I am sure the Russians are sensitive to that and want to pay back their enterprise. What underscores all this is that major governments seem to be enemies of the public adulation of gold. They seem to want to sell their paper instead, telling people that gold cannot represent wealth because there is not enough of it. What hooey. One counce of anything could represent a tonne or more of anything else if the buyer and seller say so. The government has no business in between. To sell an asset is to say that paper is worth more than the asset, or that at least what you want to buy with that paper is not tradeable in any other way. Paper can never be worth an asset. At best it is temporary representation of the asset's worth. As soon as you get it it should be burning in your hand to seek an offsetting investment or storehouse of value. And no, Virginia that storehouse would not be a bank, with their minimal interest and whopping great service charges against a flooded M1. If even T-Bills could offset your costs, then Japan would not have had an economic collapse at all, as they held more US T-Bills than anyone. If their banks had held gold this would not have happened. If their currency was limited by gold on hand then it would have been plain that more money to finance excess expansion could not be lent. There is only so many man hours, so much efficiency available. It can only buy so many things, or want to. This limits all production. Everything else is inflation. All commodities used for value comparison, such as gold, or diamonds, will retain constant value as long as production expands, and markets are not flooded or counterfeited. EC<:-} EC<:-}