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Gold/Mining/Energy : GOLD-XAU -- Ignore unavailable to you. Want to Upgrade?

To: Jaakko who wrote (925)	12/31/1997 2:28:00 AM
From: Odi Handoko	Read Replies (1) \| Respond to of 1756

Philv/Jaakko/All: Here's a repeat of what I posted earlier on the Gold Price Monitor thread. Bottom line --> just because CB(s) have sold doesn't mean they cannot buy back later at lower price (aka shorting strategy). Would like to get your opinions on this. ******** Original Post Repeated Here ******** PC: No I don't have info on gold's performance in the 80s BUT.... consider this...... I just read about the CB of Argentina having sold off almost all its gold reserves at an average price of US$380. Now the absolute numbers don't matter but think about this... The fact that a CB sold doesn't preclude it from buying the same metal. Imagine how you would look having sold gold earlier at avg $380 and buying back same amount at avg below $280 or less. This could be an exercise where at the end of the day, you end up in the same place as before but with profits > U$400M in the case of CB Argen. Juicy isn't it? Think about it.... Well this party lasts only as long as the greater fool theory holds and that is the greater fools are those who panic and sell out. As the previous poster said, gold isn't something you go to the printers and create so.... JMHO.