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

To: Abner Hosmer who wrote (9632)	4/9/1998 9:15:00 AM
From: Enigma	Respond to of 116801

< I don't think gold can have a sustained rise until capital feels threatened again. Central banks sell gold because they feel it is safe to do so. They didn't always feel this way.> -- This is true, but they seem to have got to the point where they realise that the public has to be reassured about a new currency - so we get back to the concept of faith in currency and that seems to be the cycle we are approaching now. I know this must date me - but my experience with gold started in 1973 - not too long after Nixon shut the window. In that year there was a currency crisis (I had just become a broker) and gold and particularily gold mining stocks became the place to be. From 1974 - 1981 I was in the gold mining business and of course this period included the run up to $800/oz. In an earlier post I mentioned that it is hard to stick to one's guns when there is a hedging strategy in place. Just imagine what it is like when the price is jumping by leaps and bounds. The Board of Directors wants to change policy every month! That is why Barrick have to be admired for being so consistent. The conventional wisdom today is that inflation is dead, well maybe here, for now, but a lot of money is being created, and there is a lot of fear and uncertainty worldwide. I'm not so sure it's a case of capital feeling threatened - rather it is a case of money under siege. We'll see.