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

To: Zardoz who wrote (24965)	12/27/1998 6:34:00 PM
From: E. Charters	Respond to of 116796

There are four facts that militate against your position. 1. Prices of gold are set by a small amount of trading that is basically gov't cartel set so it is not an "efficient market". A true world exchange for gold would drive the price up. Who does not fear inflation? 2. There are in fact two prices of gold operational now. The forward sale price to Dome and Barrick and their ilk, of $400.00 and the quoted price of $285.00. Who buys and sell their gold at that price except the powerless? 3. The Nations who mine relatively small amounts of gold in recent times, Britain and the US have a disproportionate role and interest in controlling its price. This underscores its cartel based structure. 4. The true largest costs to mine gold are capital cost to build infrastructure and structure and labour. Not fuel. The relation of gold to oil is based on trade and other market dymanics not cost to produce. Gold is relatively low energy to mine and even lower energy to mill. Copper by contrast is high energy. But when it is in demand for military and gov't infrastructure uses, cost is no object. Due to (4) we can see that gold is priced by the dollars excess more than the cost to produce. So if dollars are so much in excess why would Gold be so low? That is because dollars have flown to investment rather than direct expenditure. But the gov't still treats this type of expenditure as an inflationary expense because of the low success rate of market investment (basically break even). When the market is high gold is low. classical paradigms are still operative. It is the tech market in the US that is partially responsible for keeping gold low. mailto:echarter@vianet.on.ca The Canadian Mining Newsletter EC<:-}