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

To: Greg Ford who wrote (4132)	12/10/1997 10:37:00 PM
From: Steve	Respond to of 116892

I have heard a similar theory. I do admit that it is a little simplisitic but I am no expert either. The big producers may be coming near the end of their presold gold contracts at let's say $380 per ounce, by somehow lowering the price of gold, they eliminate competitiom from the smaller producers who can't afford to mine at such a low return. The demand for gold is still there but with less gold being produced the price goes back up(we hope)and the big producers can again pre-sell their gold at a good price. They might even be buying gold now at the lower price and keep it in reserve in case one of their operations gets into trouble thereby fulfilling their contracts without any penalties. Another possibility is that with the price so low they could TRY to buy out smaller operations at a fraction of the price they might have previously offered. Sorry for being so simpleminded but it is something to think about.