Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Casey who wrote (10621)	4/25/1998 12:14:00 PM
From: Superhawk	Read Replies (7) \| Respond to of 116789

To All: John Dessauer, in his April 1998 "Investor's World" newsletter, entitled a section "Bigger Problems Ahead for Gold". He asserts that there is an enormous supply of gold coming into the market via Central Bank selling. At the same time, he states, demand is shrinking and will continue to shrink for the next several years. He sees the price of gold at $200 or lower. He bases his analysis on the premise that, following the European currency union, the combinations of currencies and gold reserves will result in an excess of 4,000 tons of gold. He punctuates his piece with actual or intended sales of gold by central banks: Australia sold 2/3 of its reserves; Switzerland plans to sell 54%; Belgium has sold 299 tons bringing their gold sales to about 1,000 tons since 1989. If his figures and projections are correct, the supply/demand imbalance argues strongly for gold prices to tank. I'm interested in reading counterpoints as well as other evidence to support Dessauer's position.