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

To: E. Charters who wrote (21054)	10/7/1998 10:17:00 PM
From: The Street	Read Replies (1) \| Respond to of 116873

<<$700 an ounce.<< Agree to a great extent. I still think that the idea: "Gold per 1 oz. is worth a quality man's suit." I has been that way for 2,000 years.

To: E. Charters who wrote (21054)	10/8/1998 4:29:00 AM
From: Zardoz	Read Replies (1) \| Respond to of 116873

Thought you hold a degree, in technology or economics? What about technological advances. The ability to find Gold is easier. The man hours required to remove tons in a single shovel. Processing it in a single hour, and delivery to market 2 weeks ahead of the next crisis? Gold is price in US Dollar. Ask yourself this. If Gold is undervalued, why don't the hedge funds jump on and get it back to price equality. Because it's there already. Where it's going to be tomorrow is based less on the fundamental, and more on supply and demand. And with the recent actions on the US dollar, and related currencies, the trend got wacked today. But like all good things, take time to get shaken out. What was controlling the last three days of the POG was US dollar demise. I assume you didn't notice the reports on the TV, about how the Japanese banks where selling treasuries {something I mentioned weeks ago, when the YEN did not seem to be depreciating in what is precieved as spiraling deflation} But today it put the added pressure on the bonds, and currencies. But still this is a local effect. This was the breakout of the bond market due to Japan banks borrowing at home and investing in USA. In a few days, the trend for the US dollar will be up again relative to the YEN, and the rest. This is why the almighty dollar index took the hit. In markets instability, everthing takes at least on turn in the shake out. It may start with finacial assets, spread to currencies, and than commodities. A push here, a pull there. When it's all down, the direction it took in the volatility is usually the opposite it will take when the volatility subdues. A true bear markets takes years to delevope, and during this shake down, the markets have all corrected. Demand was high in the last week, for various reasons? #reply-5947241 This posting has me very intrigued. My guess is a producer sold directly, if LTCM was short at all. The fundamentals for gold are still down. There are many hedge funds out there in this world, and for every loss they book, someone must be booking a profit. I don't see the banks claiming any prizes, but I do hear about how well many of the Gold producers have such excellent hedging. Point is the producer are hedging for a lower price. Cause they most of all understand the fundamentals. You can't go back to when gold was $35 and oz and propagate forward real rates, inflation, and growth to today. Because for one, Gold was artifically held down by the latest CB wiz kid of the time. Once again, those number you posted are linear. Never have I seen a interest rate at 9% for 70 years. Steady state analysis fails in dynamic situtations, ask the people of LTCM. You need fluid analysis to react to market conditions.... is it any wonder why Black-Scholes Model was based on the Heat Diffusion Equation. Something that Mr Scholes forgot while working for LTCM.