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 : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (1194)	5/26/1998 1:46:00 PM
From: Ray Hughes	Respond to of 8010

Hello Phil, Yes, I do follow gold and gold shares but I'm not bullish on gold price outlook. A good discovery still can move up share price of a junior but I don't see a gold price-related move in store. I'm thoroughly convinced that the CBs will manage the price of gold to convince investors that currencies, not gold, are the safe havens. The CBs fought long and hard to restore credibility in their ability, and will, to stop inflation. Inflation was destroying the banking systems assets in real dollars and sending savers to invest in hard goods to the detriment of lending. CBs can short gold "against the box" in such large, concentrated volume as to intimidate floor traders. Hence, the CBs manipulation of gold tends, likely, not to cost much as they profit on the (successful) short selling and replenishing such physical as they have had to deliver by buying low after the shorting intimidates traders into dumping the price as these traders clean out the long positions on their books. Besides, the probable range of costs to manipulate gold's price pales in comparison to the rise in costs to finance debtor countries if a gold price rise were to cause higher interest rates. RH