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

To: PaulM who wrote (7757)	2/21/1998 11:33:00 AM
From: golders	Respond to of 116763

How do you define "Paper Gold"? The bullion banks borrow gold from CB's and hand them an uncollateralised "IOU" (this in itself seems incredible, because the same CB's demand Government Paper as collateral when they enter Repo transactions to add Reserves to the System) Thus, is it the IOU for gold, that the CB guards jealously in its deepest vault, "Paper Gold"? I feel I am missing something that the "ANOTHER" has identified in the real world! Best regards

To: PaulM who wrote (7757)	2/21/1998 12:55:00 PM
From: Michael	Read Replies (1) \| Respond to of 116763

Re: Your points; 1. Money supply increases generally correlate with gold price increases. Makes sense. Money supply up, dollar value down, gold (in dollars) up. I think I've already covered the money supply issue in my other post. Furthermore if you go to : tfc-charts.w2d.com and take a look at a number of commodities you'll see that Gold's decline in the last few years is by no means unique. I'm sure this signifies something though I don't know what. Perhaps the deflation school is right after all, though how that squares with 11% M3 growth I don't know. 2. The anonymous one said that gold could never stay below $280 for a significant time. I saw this and was impressed with the confidence with which he made the statement, though not the statement itself. It doesn't take a genius to figure out that a price at which the average miner makes a around a 15% loss is not one that can last for long. Though to be fair there were a lot of people talking about lower bottoms before it turned. So score 1 for him. 3&4 "Oil" has now "locked" the Cb's and IMF's gold from physical sales of significance (to anyone else that is). I find it hard to believe that the big CBs would ever agree to this kind of deal. When do they deliver. How are they going to justify the transfer to their electorate.