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

To: Jim S who wrote (4229)	12/13/1997 9:24:00 PM
From: TD	Respond to of 116760

Jim, Gold is GOD with an "l" in it! It is the money of last resort when mass fear hits the markets people will run to gold as never before in recorded history. All throughout history when gold was cut from it's function as policeman on the politicians, preventing them from printing too much unbacked paper, there was a financial upheaval. Study history or take my word for it. It usually happened within 30 years, Rome, France, Germany, etc. Now usa went off the international gold exchange standard in August 1971.[ under Nixon who proclaimed "I am a Kenesyian(sp)"] 1971 + 30 = 2001, with the Y2k problem and the continued lie of central banks that wealth can be printed then you have a choice you can beleive history of you can beleive history, do yourself a favor and find yur own answer therefore take responsibility for your own decision. Hope this helps.

To: Jim S who wrote (4229)	12/13/1997 9:30:00 PM
From: Eric Freeman	Respond to of 116760

To try and place a value on Gold as a commodity only, is impossible in my opinion. Why? Even if all the large holdings were to be sold off, obviously causing a downward price, could you really convince everyone that it was not a store of value, when in fact it is. The reason it is a store of value - the qualities it has - that is fact and not fiction no matter what spin you put on Gold. IE Let us say that a person wanted to store real wealth, as against a promise in the form of a piece of paper or a computer entry somewhere. What are the available choices. Well we could store many things: lumber, diamonds, oil , food etc. The problem is that none of these things possess the qualities many people would be looking for: small, expensive to actually produce, in limited long term supply, lasts under most any conditions(no rust, rot or deterioration etc), portable, storable, uniform, universal recognition, beautiful, malleable etc. Now really think about this: what else is there? Most people believe in the system - banks, paper, computer entry etc. and they may well be right. But if you do not, and you want something solid - what choice do you have, that is practical. This is why gold got to where it is - it is not a relic IMO - it still has the same qualities. So back to the question: If they sold off all the gold - down for a medium amount of time - but remember, gold is rare and it would get real popular if the price plummets. Then what. No overhanging supply and still costs to get it out of the ground. So do not kid yourself about it ever being as cheap as copper or silver. If that happens I think it would be bought up so fast it would be staggering - never happen. The real question - how far down can this overhang push the price. I do not think anyone knows. My guess - absolute low could be around $180 but I doubt it ever gets there. Too many interests, problems etc. looming. Think in terms of what might happen if the reverse happens. People decide to trade in their paper. The whole gold supply couldn't back up whats out there to even a small percent. Price potential in that case- thousands per ounce. All I can say: Remember a year ago when all those "smart mutual fund guys were telling people about the growth in Asia" Sure seemed to turn in a big hurry. Now some of those same people are saying the complete opposite. It could easily happen to Gold. Certainly not saying it will but I am not one to believe all these guys on the TV who are down on it. So price: think long term - when the price is getting down to where most of the production is not profitable something has to give. Eric

To: Jim S who wrote (4229)	12/13/1997 10:27:00 PM
From: goldsnow	Respond to of 116760

"my questions to those who understand this stuff is, "If gold ceases to be the internationally recognized medium of value and exchange, what is its real value? Is there a bottom to the price?" Jim, I do not want to pretend that I understand this stuff better than you do, but let me give you my take on gold. Let,s accept your premise that CB, decided that gold is a commodity and as such has no role in financial system and accordingly needs to be sold. Let's stipulate futher that they would find buyers (not CB's) Nobody really knows what is a value of Gold as sparse commodity is. (people speculate-$225, $100 and so on. That is of course because nobody really believes that gold would become just a commodity, with supply and demand dictated presumambly by people who would buy CB's gold. What is known that under present conditions demand is growing fast and supply is dwindling-that is mines get closed, exploration halted, and profitable mines have 2-5 years of life span. Even with advances in mining technology the production costs of old mines are very high. Now there only 110,000 tons of gold in a world that was ever mined, CB's hold roughly 30,000 tons-that is non-factor even if they sell it all in 10 years, assuming little to no production that would result from such a move and assuming that India, China, France and others would agree and concede that USA Dollar is a Supreme Muster and must be a King (long live a King) and they Chinese should be subservant slaves to the Dollar King. If as I suspect you and I agree that Chinese and others would not agree to that,more so violently disagree with that, than what would replace gold? In fact USA and Dollar has to fear much more from China and even EU in short term, very short term. The Swiss with all the pousturing are financial power because of Gold not Frank, and they know it. With average production of Gold of 2400 tons/year (which is dropping) and consumption of 3000 and rising 30,000 tons is non-factor if a role of gold looked upon beyond current cycle. The significance of the Gold price today is that for the first time in years, the average price of production is higher than POG, signifying an absolute bottom and destruction of the mining industry if POG dropps any further.The debate is really short term ?2 month, 6 month, 1 year, 3 years, longer? If POG stays where it is for 6 month than how high it will go and how important it will be is a subject of imagination

To: Jim S who wrote (4229)	12/16/1997 10:49:00 AM
From: Ronald P. Margraf Sr.	Respond to of 116760

Hi Jim, I can remember it when gold was at 40./z. Even at those prices it was still coveted. So does that help? Gold will always be an/the medium of exchange regardless of its price. It just is that the further the price declines the more of it you will have to have to achive your financial goals. As far as its true value. I beleive that is in the hand of the beholder. Myself. If I was hungry and starving I would rather have a plate full of food then a plate full of gold.;-) Ron