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

To: Broken_Clock who wrote (15728)	8/11/1998 10:24:00 PM
From: Enigma	Respond to of 116791

Maybe they're paying off loans too. I have, out of the market and out of debt. E

To: Broken_Clock who wrote (15728)	8/11/1998 11:53:00 PM
From: Wizzer	Respond to of 116791

Papaya, your points are well taken. Let me say first of all, that I believe the price of gold and gold investments nearing the end of 1999 will be very high. Gold will have it's day again and I have been a long time supporter of gold. I am aware of what the expert opinions are of why the price of gold is low, but I believe that either there are missing factors involved or else the reason is something else entirely. What surprises me about the POG, is that I do not believe it should be this low, which appears to be barely over production costs for most producers. Short positions are powerful, however, when the price is going to go up, it will. The original reason why the price of gold went so low last year was fears of central banks selling a lot of gold. It was a supply/demand concept that drove the price down (as in the supply was supposed to be much greater than it was, so the price went down). Those fears have all but evaporated now. The US dollar was also quite strong relative to other currencies at the time. In hindsight, had the central banks not announced they were going to sell gold, I think the POG would have still been lower than expected. There has been no satisfactory explanation of why central banks would announce their intention to sell gold so far in advance, then after the POG is depressed, indicate that they might not. The explanations by the experts, although quite plausible, just appear too wide sweeping and general. This current explanation, is just that, another explanation. I believe the reason is convenient, and avoids more sinister reasons. I believe that it was not only the "fear" of central bank selling that forced investments out of gold, but the bull market that was roaring along. Returns in gold did not compare to stock market earnings at the time. Now that the bull is faltering, I would have expected there to be some movement into gold. Gold continues to decline. Thanks for pointing out Mr. Kaplan's gold site and I will check it out. Cheers.