Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: E. Charters who wrote (21669)	10/14/1998 10:10:00 PM
From: waldo	Respond to of 116768

BOJ report says economy continuing to deteriorate It is unlikely that the economy will recover quickly as output, income and spending remain in a negative cycle. It would be favourable for the government to quickly flesh out promised tax cuts and public works spending, given that they will have both a direct and psychological effect on companies and consumers. * Corporate sales and profits are worsening rapidly as personal spending and industrial output decline. * Corporate business sentiment has worsened greatly and consumer sentiment has become more cautious Corporate financing conditions are becoming more severe amid the fall in earnings and as no improvement is seen in banks' cautious lending attitudes. The effect of these severe financial conditions on business activity and on the economy continue to warrant careful monitoring. Japanese prices are likely to remain in a downtrend for some time, given a likely continuation in the expanding supply-demand gap, continued wage declines and the yen's recent jump against the dollar. The BOJ must monitor the effects of the yen's rise on Japanese exports and on the competitiveness of Japanese products. The yen's rose sharply rise against the dollar in early October, largely reflecting uncertainty about the prospects for the U.S. economy and dollar/yen movements remain volatile. There is a need to watch the risk of the U.S. economy slowing further on such factors as developments in emerging markets. Japan's growth in Japan's money supply, expressed as M2 plus certificates of deposit, has recovered slightly since the summer as some companies, especially large ones, are seeking ample liquidity to prepare for unexpected situations. M2 plus CD's is expected to grow between 3.0 percent and 4.0 percent in the October-December quarter year-on-year. biz.yahoo.com W

To: E. Charters who wrote (21669)	10/15/1998 12:39:00 AM
From: waldo	Read Replies (1) \| Respond to of 116768

Eric, what if the CB's leased the same gold to dozens of Hedge funds, many times over? Now I see why "Another" and "FOA" are convinced that some mining companies may default, rendering their shares as a possible risk. "What will happen is that much of the current financial leverage, that is heading into it's last days, will be covered by delivering Euros as partial payment. When gold begins trading again at a new value (of perhaps $6,000 US present buying power) in Euros, it will be easy for some of the defaulted holders of loans (oil and others) to be made whole in currency. With this in mind, some entities with huge natural resource reserves have used them as collateral to originate the money used in a 1% CB gold loan. It is almost like selling oil for gold, don't you think? With a gold valuation that high, the Euro will become The Hard Currency for the 21st century. Now, to your question: A gold loan by a Central Bank to a “Financial Operator” (hedge fund and others) in indeed an unsecured loan! They have loaned their gold as “backing for the deal” and must supply it if a default occurs. If they have loaned it to a Mine entity, they will have a right to claim the mine assets in a default. Therefore, a mine loan is not unsecured. Not a pleasant thought for the holders of gold stocks during a worldwide currency crisis!" usagold.com W

To: E. Charters who wrote (21669)	10/15/1998 12:59:00 AM
From: The Fix	Respond to of 116768

"To put it in perspective South Africa used to dominate world supply, producing 75% of the worlds gold at a rate of about 750 tons per year. That means we are at least eight years short of the world supply rate right now. This is not just disturbing, it is staggering. When the market was short 75 tons in 1985 the price rose 50 dollars in three days." Yes Eric, But that was when we were on a Gold Standard. Times have changed my friend. Sorry to say but POG will not go over $1000 oz. in our lifetime. My dreams are real. fIXER

To: E. Charters who wrote (21669)	10/15/1998 3:36:00 AM
From: Zardoz	Read Replies (2) \| Respond to of 116768

"Something is very strange in the market. The pressure downward on gold is political as it would make the world's largest economy look very weak if gold hits it true value, of between 700 and 1200 dollars an ounce." If this WAS true, you'd see the hedge funds jump on this, and cascade the gold market into the biggest of all short squeezes. Obviously you, and others are not valuing gold correctly? With a daily currency exchange exceeding 10 trillion dollars, surely some of that could migrate towards a gold as a currency. Yet it doesn't. So Let me ask YOU one question: How do you calculate the TRUE VALUE OF GOLD? A mathematical formula would be nice. PS: 70 Billion dollars is really small. Maybe most of those short positions are covered?