Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (33812)	11/22/2003 9:40:17 PM
From: yard_man	Read Replies (1) \| Respond to of 36161

It would be nice to know how much of the miners actually sell product via the futures -- how is forward selling for them defined anyway? -- if they make an agreement 1 month ahead to deliver gold -- or if they make an agreement 3 months ahead -- is that forward selling or just arranging the sale of their commodity??? I guess I agree it doesn't seem like the idea of a cartel holds much weight, unless it is the CBs themselves -- but in the current environment of what benefit would it be for them to keep gold down?? No, they need to sell inflation as "not so bad now," but they can't pretend they've defeated inflation forever and absolutely, lest deflation become a self-fulfilling prophecy -- after all, these masters of the "wealth effect" are absolutely convinced that "appearance" is reality -- or the only one they need in their world -- to move those making the decisions to buy and sell. Goldbugs dream of a conspiracy to be unwound, because they'd like to wake up tomorrow to $3000 gold. Maybe because they stupidly held on through a bear market and lost a ton and need someone to blame and hope eventually to be right. I think the best they can hope for is a slow grind up, punctuated by some severe selloffs occasionally -- which leave them room to doubt -- or spout more conspiracy theories. <g>