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

To: long-gone who wrote (21655)	10/14/1998 9:29:00 PM
From: waldo	Read Replies (1) \| Respond to of 116782

Richard, speaking of mantras...this post is from an Institutional broker from Beverly Hills, who happens to be a gold bug: <<Conversation with a gold trader... A recent visit to NYC allowed me to visit with an old business acquaintance who is the head trader at a gold desk. I speak with him about 3-4 times a year and visit him about that many times each decade. He is a market making trader. He just wants to buy at the bid, sell at the offer, do that as many times as he can and go home flat the market at the end of the day. He deals in size. He talks to many hedge funds. He leases gold. He does not handle derivatives. I wanted him to be bullish about gold. Since I'm quite positive, I just figured the market players would be. hahaha. He was not, to my disapointment. To each one of my leading questions, he answered "it's at an 18 year low." I'd ask: Bullish yet?. -- "what? bullish, it's at an 18 year low!" Supply/demand fundamentals?, --"18 year low" Central bank selling slowing?, -- "18 year low" Dollar decline. Euro introduction? --"Hahaha, 18 year low" Global meltdown? --"I sold some the other day to a 'high-end retail client'...at an 18 year low" Hedge fund covering? --"don't see it yet, 18 ...." Relative strength of XAU? --"I deal in gold ! , but I watch that too." Tell me then what would make you bullish? --If the price rose up toward $315, I guess I'd have to trade it from a long position...til then forgetaboutit." That's all one needs to hear. A real trader, like my friend above, is probably the most acute barometer of all things current, known, and knowable about gold. Things that happen, or don't happen for that matter, are discounted immediately into the price. BUT, the time horizion is short and current pricing is the prime motivator. I assure you, his opinions are dominant on Wall Street. He thought that "18 year low" was proof of the listlessness of the commodity. That is so. However, I also believe that all cyclical lows have such labels each and every time. "5 year low", "12 year low", "18 year low". It's natural and it's a logical requirement. >> W