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Gold/Mining/Energy : International Precious Metals (IPMCF) -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (23341)	10/26/1997 11:10:00 PM
From: Zeev Hed	Respond to of 35569

Claude, here I must disagree with you. I am not sure this is the right place to elaborate the argument (I have done this a number of times on the golddiger thread), but very simply, for gold to return to the status of the currency of last resort (the old gold standard), the rate of growth in gold worldwide supply has to equal the over rate of growth of the world growth product. That will choke any economic groth in the world. Now gold is just another commodity and will respond (sure with fe jitters) to supply demand situations. With the overhang of few full years of gold production still in central banks' vaults, and the recognition by these banks of the debasement of gold as a standard, I think the conditions for a rally in gold will occur when massive closing of marginal gold mines will occur. Any rally to 330 will be met by ferocious forward selling, not only of the well financed giants like Barrick, but of all the marginal producers that have not sold forward until now. Look at the reaction of the gold miners that have very little hedging activities in Australia, in his morning session they took them out and slaughtered them. Zeev