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

To: James R. Barrett who wrote (3419)	11/22/1997 5:02:00 PM
From: PaulM	Read Replies (1) \| Respond to of 116814

James, the only comfort I can offer is: 1. As times goes on, the CB's will have to put up or shut up. They won't be able to talk gold down without actually selling. 2. If Veneros is right, 8000 tons (1/4 of CB supplies) is already loaned out. The market has already abosrbed this. If what was loaned was melted down, who is going to cover and at what price? 3. CB's aren't all the same. There's a whole spectrum of views out there. Some won't be stupid enough to dump when paper currencies aer in turmoil and in fact will see the advantages of hoarding (thus becoming the new world currency). 4. Again, demand not just supply. We are coming off 15 years of high equity prices. If good times are over, and they may be in Japan, demand dynamic can change very quickly. Soon. Particularly given eastern view of gold.

To: James R. Barrett who wrote (3419)	11/24/1997 9:32:00 PM
From: John Barendrecht	Read Replies (1) \| Respond to of 116814

<<The CB's have everything to gain>>Central banks also have everything to lose. Once people no longer "believe" paper has value, than ANY currency is worth no more than wall paper. Million mark notes were common in Germany, yet you needed a wheelbarrow full to buy a few loaves of bread. Paper money is only as good as "perception" of value. If CB sells all this gold, who is buying it? I think I mentioned this before, during WWII, you could have any currency you wanted, but if you wanted to buy goods you had to have gold or silver. How many people wanted Viet Namese or Czech money during their wars. I am not suggesting that war will destroy faith in the US dollar, Japanese Yen or German Mark, lots of other things can ...