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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Condor who wrote (21109)	8/12/2007 12:18:53 PM
From: elmatador	Read Replies (1) \| Respond to of 219150

Gold price is murky: Inflation rate of gold mining industry props Gold price. gold mining industry's current 17% inflation rate. USD trends props gold price. Central banks are a cartel that control gold sales via Central bank Gold Agreement. Today's price reflect that Central bank Gold Agreement if not for it gold would have gone below 250 in 1999. Would you trust your wealth to a bunch of central bankers who discuss behind closed doors and keep mum about what they want to do with Gold? If gold is bought by Central Banks, as reserves, that would prop up gold price beyond inflation of mining industry. But they would need to sell their currencies' reserves. That means they would send down the value of the currency reserves that they already have.

To: Condor who wrote (21109)	8/13/2007 12:30:42 PM
From: energyplay	Read Replies (2) \| Respond to of 219150

China central bank has announced some gold purchases. I expect Brazil and some other countries have also been buying. The GLD ETF has made very large purchases. India buys a lot before their wedding season. A moderate amount goes into gold bullion coins, and goes into retail channels. There is continuing industrial use - many integrated circuits user gold bonding wires ( about 1 mil 0.001 inch diameter) **** Barrick mining ABX is still working off their hedges and gold leasing. That gold was leased from the central banks, and this may be the source of some of the circular transactions. Barrick leases 1 million ounces of gold from Central bank A in 1992, then sells the gold. They use the money to buy more gold mines, and slowly expand production. Fifteen years later, Central bank B sells 1 million ounces gold. Barrick buys the 1 million ounces, returns it to Central bank A, closing the lease. Barrick's board of directors had Maggie Thatcher at one time.