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

To: philv who wrote (995)	1/2/1998 4:44:00 PM
From: paul ross	Respond to of 1756

Letter to Rubin from Nader- (off Kitco thread): essential.org

To: philv who wrote (995)	1/2/1998 8:51:00 PM
From: Richnorth	Read Replies (3) \| Respond to of 1756

I am very puzzled by the stance of the Japanese Government in regard to their economic problems. Despite having much cash and sizeable holdings of US bonds, they seem so overly cautious when it comes to putting their economic house in order. Or is there some other hidden agenda? Or are there some more "shockus" that still have to come out one by one before they would start acting in earnest? I am also puzzled by the seemingly conflicting remarks of "Mr. Yen" who said Japan will be making a move or two that will surprise the world and of Prime Minister Hashimoto who reiterated that Japan will be careful not to do anything that will disrupt the markets worldwide. What are the Japanese waiting for? Waiting for a decent rise in the pog? Sounds plausible, doesn't it? If they are indeed waiting for a rise in the pog, they certainly must be feeling very frustrated for now. It looks like the CBs efforts to drive the pog down kill two birds with one stone! Can this be sheer coincidence? (I mean EMU's chances of making its debut are now much enhanced while Japan is being thwarted.) Can the cat-and-mouse game (if indeed it is such) go on much longer without repercussions? A short while back, you seemed to be defending the CBs, and someone asked you why. It seems to me you have either missed seeing the following excerpts or have entirely forgotten about the sentiments expressed therein and elsewhere in other articles etc. Regards, Richnorth ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ It seems to me either you have missed seeing the following excerpts or have somehow forgotten about them:- Excerpts from: John Kutyn's articles in Gold Digest at gold-eagle.com 1. If we accept that government bonds and currencies are at best an illusion of wealth, and that stock markets trading at 5 times book value may be over-priced in view of falling profits and currency upheaval, then the only investment alternative is gold. Realizing this, governments have driven down the price of gold. In order for the world to continue to believe in the government promoted illusion, the price of gold must continue to fall. If the world were not on the edge of an economic collapse, the price of gold would not be so low. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2. The demand for gold is now the highest it has been in the history of mankind. At the time demand is increasing, central banks around the world are telling people that gold is a terrible asset, while they flood the market within their gold loans to drive down the price. If ONLY 1% of the U.S.$12 TRILLION in Japanese savings moves into gold, this represents a demand for 400 million ounces at today's price. This will force all shorts to cover, which are reportably as high as 8,000 tons. Combined with normal industrial demand, this would explode gold demand to a level equivalent to 10 years of mine production. Should more than 1% of Japanese savings, or other investors in the world purchase gold, even this number will be ultra-conservative. Having said that I must observe that in the short-term, the price of gold may continue to suffer... due to the public's current mis-guided perception of gold. NONETHELESS, it behooves us to understand and appreciate that the short position is so huge that it cannot possibly be covered. Therefore, the only hope for salvation of the shorts is (try) to destroy the value of gold. The laws of economics are like the laws of science. They are based on logic and reasoning and pure mathematics. When man chooses to ignore these laws or create new ones unto himself, he must face the ultimate consequence. One day we will go to sleep as the world is now. And when we awaken, it will have changed in a manner that will never be the same. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Excerpted from: forbes.com Gold market professionals agree that overshadowing the various species of short-sellers, mine-hedgers and lesser central bank disposals, there has been a truly immense seller. This seller has brutally crushed several promising rallies, nullifying usually dependable technical indicators and enormously encouraging major short-sellers, who are now confident that they can easily cover their positions. The culprit is widely suspected to be the Dutch central bank, perhaps with accomplices. What's the Dutch game? A good guess is that the Netherlands Central Bank fears that the European Central Bank coming onstage in 1998 will ban the conversion of gold into income-producing assets. The Dutch supposedly want to beat the deadline, expected to be very early in the year.