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Gold/Mining/Energy : Greenstone (GRERF) -- Ignore unavailable to you. Want to Upgrade?

To: Phil Cressman who wrote (56)	7/28/1998 8:13:00 PM
From: Daytek77	Read Replies (1) \| Respond to of 138

Phil There were some large hedges closed out earlier this year by some Australian companies. It had an impact for a while but then the death spiral continued. Gold gets partculariy wacked at options expiration time near the end of the month. This tells me that paper trading i.e derivatives are having a dramatic effect on Gold. When one looks at the World Gold Councils supply\demand stats you get another reason for gold's decline. The big driver in gold demand over the last two-three years was Asia. Let's take Japan as an example according to their stats the demand from Japan in 1996 was over 500 tonnes last year it was 160 tonnes and for the first 6 months of this year it was 5. Korea disinvested 250 tonnes in the first quarter versus last year. Basically the demand in Asia is negligible compared to where it was and that demand is not being picked up by the rest of the world. Throw in concerns about how much gold european central banks are going to sell and forward selling by producers on any rally and the result is a dead market. Tony