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

To: MUDMAN who wrote (3717)	12/1/1997 8:31:00 PM
From: Gary	Read Replies (1) \| Respond to of 116815

I think your observation is well founded. Three months ago an announcement like the Swiss made would have hit gold much harder. This would seem to be an indication that it is getting tougher to knock gold down with these remarks. I hear from the S.F. gold show that Dines, Mc Avity and one other think we are near a bottom and it wll start to come back in Apr/May. They all say that the EMU resolution will have a lot to do with gold turning around.

To: MUDMAN who wrote (3717)	12/1/1997 11:05:00 PM
From: Greg Ford	Read Replies (1) \| Respond to of 116815

MUDMAN, I think the Swiss news was already factored in to the market. The Swiss had already announced the reduction in the backing of their currency with gold when they made their previous announcements relating to gold. Your comment about a Soros type may prove to be correct. What is happening in the market is that producers who are underhedged are starting to panic. As these producers use more leverage (ie sell calls on gold) we will see an opportunity for someone to earn a significant profit by squeezing the shorts. In order for this to occur we will need to see the price drop a bit further, volatilities decrease and lease rates increase. Will this happen? I wish I had a crystal ball? Are we at the point of maximum pessimisim? I hope so. Greg