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

To: long-gone who wrote (11984)	5/21/1998 8:06:00 AM
From: Giraffe	Read Replies (3) \| Respond to of 116823

Gold Watch Veneroso Associates May 21,1998 Issue 05.04 The Gold Market "Never sell a quiet market short" The Gold Market is Not Just Quiet, It Is Completely Silent A Precursor Of A Major Upmove? The technical position in the gold market is intriguing. The overall price pattern is constructive. There are positive noises coming from the big dealers. Yet, sentiment on the part of market participants has become one of avoidance, indifference,neglect and despair. * The Comex open interest is 154,467. This is almost as low as it gets. In the last three days it dropped 5,095 contracts. In the "new era", gold is viewed as a relic from a bygone era. It is as though gold as a subject has fallen off the edge of the earth. * The American Stock Exchange had a conference recently for the Amex listed gold companies. Only five showed up to give presentations. The Amex has not yet given us the number of investors or brokers who showed up, but attendance was sparse. By one account, excluding staff from the presenting companies, there may have been only a dozen attendees versus one hundred a year ago. * Ango Gold is the largest gold company is the world. It is the result of a merger between two giant producers - Anglo American and Gold Fields. It accounts for more than 10% of global mine supply. Even at today's depressed gold share prices, it has a market cap in the billions. The merger is complete. The new company will be listed on the NYSE. A debut luncheon was held for top management to tell their story. Six people showed up. One was our own representative - John Brimelow. It is our guess that the total money under management by the attendees was less than $100 million. * From the World Gold Council, the market got very bearish global demand numbers for Q198. Yet, the market took it in stride and closed slightly higher. We will deal with this WGC gold demand survey in a forthcoming Gold Watch. * We have a huge pennant formation building. Formations such as this often result in big price moves * The market is having trouble above $300. The big central bank gorilla is still feeding out its final tranche of supply. * All of these considerations and anecdotal evidence are consistent with our belief that a massive six month base is near completion. As soon as the big gorilla finishes this last tranche of selling, the market should move up, and maybe sharply at first, just when everyone has lost interest in this market.