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

To: Richnorth who wrote (4370)	12/17/1997 1:20:00 AM
From: Ronald P. Margraf Sr.	Respond to of 116900

Hi Rich, I don't think gold has seen its bottom yet. Most folks forget what the CBs said about 18 mos ago. They where discouraged about the way gold was trading. At that time gold was trading in a range of 8.00. Now someone correct me if I am wrong but my understanding is that the CBs make there most profits on the movement of gold. The more volatile the more profit. The CBs wanted to see gold move to the downside. The deep downside. The question was how was it going to get there????? Nobody was giving any ground up. CBs make no money on an 8.00 move as they put it. At that time I beleive it was moving in the range of 385-405 depending on the move and how long it stayed at any give price. So the 8.00 move stayed intact. Now the CBs wanted to see gold move to 415+ or drop below the 350 level and trade in that range but it wasn't happening. So you have to ask the question, how do we get it to move off of these bench mark prices? Get it out of this trading range? Naturally you create a shortage or a surplus. The best way to move it down is create a surplus. To much of the stuff around. So we sell some of it off. Generate cash and wait. Now how do we create a demand? First you try to convince governments to sell their gold reserves and buy into something else. In this case Dollars. Dollars can be handed out to the general population to pay the welfare benifits that the public demands. Now what happens? Too many dollars out there and nothing to back it up. Inflation sets in. Econimies are left short. Worthless dollars. How do you shore up dollars? Back them up with gold. In the mean time the CBs are buying up gold at cheap prices with the money that they generated when they sold it at the higher prices. Unfortunatly so has the general public. Wela!!!!!!!! What do we have???? A shortage of gold. So now governments start asking the general public to turn in their gold and start to pay higher prices to get folks to give it up. Now who is in the middle of the frey?? You got it, the CBs and the traders that have now stopped shorting gold and started taking long positions on it. What do we have????? Panic!!!!!! In the 1st degree. Gold soars. CBs sell the surplus into the market and make tremendous profits.;-) Once again governments have been bushwacked and have proven their ineptness. And it starts all over again.;-) Isn't it fun?????;-))))))) Ron