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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (2474)	12/7/1998 4:22:00 PM
From: yard_man	Respond to of 81169

I like both! To heck with the TA.

To: Crimson Ghost who wrote (2474)	12/7/1998 4:39:00 PM
From: sea_urchin	Read Replies (2) \| Respond to of 81169

Yes, George. The action in gold shares left much to be desired. But, having said that, I don't think the market understands the reason why gold went up at all today --- after all, the technicals still look weak. Therefore, for POG and XAU just to hold at the present levels, considerable confidence has to return to the gold/share market. If that can happen then POG $300 can be challenged. However, I believe it will still take time for POG $300 to be breached. So, as I have said previously, I think the most likely outcome, for a while, is for POG and XAU to move sideways. I am not familiar with oil drillers as there is only one such company on the JSE and it operates only in Africa. Still, if general reflation continues, and the CRB can move upwards from the 200 level, then oil should move too. Meanwhile, it looks to me like the major gold producers, like Anglo and Placer, are getting a tighter and tighter grip on production. In this way, I envisage the Gold Producing Companies (GPC) colluding and operating in a manner similar to OPEC to prevent overproduction and forward selling in the face of falling, or uncertain, gold demand. Remember, similar to what OPEC did with oil, it was only when deBeers tied up the diamond market that stability was restored and diamond prices could be raised. I trust you can see how the SAf miners are moving towards the situation where their gold reserves, and therefore the price of their shares, can be valued at $50+ an oz, in the ground, instead of at $5-10. The Western Areas/Placer Dome deal does exactly this. Without a single ounce more of gold being produced, than would be produced if JCI Gold owned the whole mine, the whole property has (theoretically) been revalued by at least FIVE TIMES simply because Placer Dome bought half the mine. Something to think about.