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Gold/Mining/Energy : Pacific Rim Mining V.PFG -- Ignore unavailable to you. Want to Upgrade?

To: Quickdraw who wrote (8844)	2/27/1998 12:40:00 PM
From: Enigma	Read Replies (1) \| Respond to of 14627

Keep posting all this interesting stuff. The business of 'massive gold sales by central banks' as reported by certain lazy analyists (and hedge fund managers who have a vested interest in spreading such rumours, at least when short!) has never been supported by the facts. It just goes to show that in a bear market only the negative stuff is picked up The Davos meeting was very important. Ironically, so was the business of South Koreans turning in their gold for payment (later) in local currency. The value of the gold had, of course, soared in local currency value - thus confirming its traditional role as a store of value. The bears would have you believe that the Korean Govt. has been dumping the gold on the market. I wonder if that is true - they said they would sell it in an orderly fashion, which probably means that they have done some deals with other central banks. In any event very little of this gold is ever consumed - it is still THERE with new owners! The above two events will come to be be seen, I think, to be indicators of a major change in sentiment. WE owe some thanks to P. Munk for his role at the Davos meeting, and in the run up to the meeting. There are some pretty dumb people running central banks (not Greenspan who is on record as being pro-gold). I'm thinking particularly of Canada, and Australia - both gold producers - who, far from encouraging their domestic producers, have acted as if they are actually against the producers. Canada has over the years sold almost all its gold, and we know about the recent Australian sale, which did enormous damage to market sentiment, at the same time decimating the value of its remaining reserves, and the country's reserves in the ground. Economics 101 in reverse. A hobby horse of mine. I'll shut up now - I know I'm preaching to the converted on this string!