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

To: Bob Dobbs who wrote (24966)	12/27/1998 5:29:00 PM
From: teevee	Read Replies (2) \| Respond to of 116796

Hi bob, To answer your questions: 1. Gold is unique in that banks (both commercial and central)still buy it on presentation by the seller. Try selling a couple pounds of copper or lead or zinc to a bank. 2. Hard to say, as only offical sales are reported. I suspect official sales offset purchases to some degree. 3. Gold miners are adding about 6500 tonnes of new gold every year to existing gold which exists as reserves, bullion, jewellry etc. 4. A lower price of say $US 200 per ounce will help get the supply back in line with demand. The largest and best deposits support gold cash production costs of US$100 per ounce or lower(mining and extraction costs continue to fall). Needless to say, many gold producers would go out of business as so they should. 5. Extra-ordinary non-rational purchases by gold bugs only delay the inevitable. Gold bugs are "underwriting" the delay in the decline by buying and hoarding. Their puchases help continue high margins for miners. As the price falls, the gold buyers absorb losses as miners continue (as they must) to sell. I hope this helps. regards, teevee