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

To: Bobby Yellin who wrote (6331)	1/20/1998 2:21:00 PM
From: JD	Read Replies (3) \| Respond to of 116779

Hints of a short squeeze. From USAGOLD daily commentary. Rumours starting about a possible squeeze that may soon occur caused by long positions demanding delivery of metal instead of paper. May not happen but it's interesting to see that the notion is surfacing. USAGOLD 10/20/98 (my bolding ... for skimmers) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MARKET UPDATE (01/20/98) AM----- Gold was off a little in early in New York trading with at least one bullion bank selling into a strong opening. Gold was strong in foreign markets overnight. Hong Kong was up on short covering and bargain hunting. One trader attributed the strong Hong Kong market to Indian buying and Japanese short covering. The overall market has been characterized on the demand side by strong consumption in India and bullion coin sales in the United States at the highest levels since 1987. The market continues to be held in check by hedge fund short-selling. If a large of the longs decide to take delivery -- which is rumored -- a squeeze could develop as early as January 30th, First notice day. On first notice day those with contracts on the COMEX must state their intentions. If they are short, they must confirm their intention if they want to deliver metal. If they are long, they must confirm their intention to take delivery of metal. The rumor (unsubstantiated) we have hear from a reliable source is that there is consortium of buyers who want to take delivery. This same source cautions strongly that he cannot confirm this consortium's intentions. DO NOT TRADE ON THIS RUMOR ALONE. DO YOUR HOMEWORK! One more major factor to be considered is the fact that even a weak recovery in Asia would stimulate very strong gold demand because the currency crisis will remain fresh in investors' minds even as the economy recovers. A good example of this sort of thing is India. They experienced a currency disaster with the Rupee similar to what occurred in the rest of Asia in 1993-94 and this has fueled the record demand growth in India today -- some 700 tons annually, a little over one-third the world's mine production. That's it for now. Have a good day. We will update if anything interesting happens. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ JD PS. I seem to be experiencing a lot of difficulty connecting to SI reently and very slow response times. Anyone else, or should I get out my trusty pipe wrench and tweek my system ???

To: Bobby Yellin who wrote (6331)	1/20/1998 4:18:00 PM
From: Mark Bartlett	Read Replies (2) \| Respond to of 116779

Bobby, <<Since this has been a corporate lead recovery at the workers (consumers) expense..once corporate profits start stagnating..>> My whole sense at the moment, is the world economies are being held together with spit, gum, and string .... this "new era" paradigm is crap, plain and simple (IMHO of course <g>). This latest market boom was a well orchestrated process. Free trade was part of it (debase the strength of the average worker - along with their living standard) .... let me ask you - "Are you better off than you were 5 years ago" ... sound familiar <g>. The pendulum has swung too far one way ... if you kill your own domestic market by curtailing their capacity to buy, IMO you are sunk. If you think you can export your way to affluence your are stupid. One of the serious detriments of the unfolding process,is not enough of the "new wealth" is getting back into the economy to generate demand for new goods (which would mean more jobs etc.) ... it is going into retirement accounts - where it will languish for who knows how long. IMO that type of wealth generation does nothing for the present economy (unless you work in the financial sector). One of the reasons that tax cuts spur the economy, is the infusion of capital it puts into the "average Joe's" hands. These are the ones that will buy the cars, appliances, etc ... that (IMHO) would do a lot go along way increasing the average person's standard of living - and curtail the job cutting. There will come a point, when the average person is just going to say - enough is enough - then the social turmoil will start. Hope there is something worth reading in those ramblings <G> Take care, MB