To: Mr. Oil who wrote (1773 ) 12/2/1998 9:29:00 AM From: PSkars Respond to
Raythe, I believe that the POG is very stable in here and that 1999 will see a much higher level, as well as silver. Right now both gold and silver are under manipulation by both gov't and hedge funds...however, this is about to change...In 1999 you have the Euro being introduced, along with that are the commitments of the central banks not to sell any more gold reserves, or lend them out....at this point the concern by the central banks is not making more money on their gold supply, but simply getting it back from those to whom they lent it....as we saw with LTCM...without the FEDS intervention, we would now be looking at a price of over $500/oz. easily...the world is short 8,000 TONS of gold at this moment and there are a lot of worried people out there at the hedge funds...the next time the stock market takes a dump, will be the last for these players and the unwinding of the short positions will occur. These moves will be rapid and will leave little time for one to position themselves in the gold market...it will also be the mother of all short coverings.
