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

To: sea_urchin who wrote (21145)	6/11/2004 11:27:02 AM
From: philv	Read Replies (1) \| Respond to of 82179

" it is not inconceivable that the gold price could fall back to around the $300 level." Can't help but comment on that one Searle. At $300, there would by necessity be many producing mines closed and fast. The withdrawal of gold from the market would be very considerable. There has been a lot of inflation, and gold mines are not that profitable on the whole, as you are aware I am sure. Your recent post about the dilemma of the South African miners right now clearly illustrates this. Exploration and development of new mines is certainly predicated on a much higher gold price. At $300, exploration would cease because financing would be impossible. Who knows where the price of gold may go, but I think that $300 is an extremely pessimistic possibility.

To: sea_urchin who wrote (21145)	6/12/2004 4:13:32 AM
From: GUSTAVE JAEGER	Respond to of 82179

Re: That is definitely what is on the cards --- and, far from being good for gold, it is bad. No, it's good... I mean, from the perspective of non-Chinese investors who want to reinvest their proceeds IN CHINA!! Indeed, as more and more middle-class Chinese turn affluent enough to buy gold (as a saving instrument), demand for, and price of, gold will rise --in renminbi. And that's all you want as a foreign investor looking for investment opportunities IN CHINA: you sell your gold to Chinese who pay you in renminbis... AND YOU DON'T change your renminbis in dollars!! You reinvest them back in China (stocks, bonds, real estate, whatever). Gus