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

To: TD who wrote (12272)	5/28/1998 3:01:00 AM
From: teevee	Read Replies (4) \| Respond to of 116836

Hi, You gold bugs just don't get it. When gold shot up over $800/oz in the early 80's, the central bankers of the G-7 made and implimented long term policy designed to reafirm and maintain citizens ultimate confidence in the 'coin of the realm'/paper money. GOLD WAS COMMODITIZED. A number of actions were taken: 1. A variety of gold trading mediums were created which didn't exist before(options, futures etc). 2. Whenever the "market" gets nervous and buys gold, the central banks' policy has been and is to "p_ss on the fire" by selling. This has evidently not changed in over 16 years and is not likely to change. Changes in the market outlook to gold is reflected in commercial banks attitudes to their own bullion. Commercial banks lend and lease their reserves, and actively trade covered options and contracts, thereby putting "idle gold bars" to work. The price of gold is now driven only by supply and demand, and mining companies seem to keep finding more and more gold and keep developing more efficient and lower mining and extraction costs. Perhaps this little factoid will put gold's insignificance into perspective: the market cap of Coca Cola is bigger than the market cap of all the gold mining companies in the world put together.