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

To: Bobby Yellin who wrote (3407)	11/22/1997 2:57:00 PM
From: James R. Barrett	Read Replies (2) \| Respond to of 116814

Bobby, one thing that bothers me is the power the central banks have over the gold mining industry. Theoretically they could control the timing and quantity of the gold they sell in order to keep the price $5 to $10 below mining cost. After a couple of years most, if not all, of the mines would be shut down and they would have total control over the price. They could then raise the price just by withholding it for awhile and if some of the mines reopened they could lower the price by dumping more on the market so that the mines would have to close up again. If the banks sold their gold at the same annual tonnage rate that it is mined plus say 10%. With the amount of gold in their possession, they could continue doing this for 10 or 15 years. Does this sound feasible to you or am I getting carried away? I am the unhappy owner of a gold mutual fund which invests in gold mining stocks. Jim

To: Bobby Yellin who wrote (3407)	11/22/1997 11:27:00 PM
From: philv	Read Replies (3) \| Respond to of 116814

Bobby: In the shadow of Wall Street, one no doubt has a much different perception of the moment and the future. Things must be terrific, confident and perhaps right now a little arrogant too on Wall Street. I am sure this spills over the entire area. N.Y. is king. People living elsewhere may have a different perception, but who knows which is right. I suspect the closer you are to the Asian markets, the deeper the foreboding. Australians probably have a deep concern right now due to their closer ties with that area. If the Asians cannot pull themselves out of their present delimma, in time the effect will be felt in New York as well. Can you imagine in your wildest nightmare the consequences if the Dow were to loose 50% or more of its value. All our perceptions would instantly be transformed. The bullish real estate market would be dead - instantly. But that will never happen of course. ?? Maybe the fixers can keep it all going indefinitely. I'm hoping! Regards Phil