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: Hawkmoon who wrote (25002)	12/28/1998 9:47:00 PM
From: Francis R. Biscan Jr.	Read Replies (1) \| Respond to of 116764

>>What I've been pondering is that the major central bankers of the world really need to apply continuing pressure upon gold so as not to permit any rise in the metal's price undermine their monetary policies.<< I share this opinion also. >>I see increasing tensions between finding "safe harbors" in fiat currencies, or in gold. Given that, minus a major unforeseen systemic shock (like LTCM), central bankers apparently retain considerable ability to manipulate gold prices through settling short sales on gold for cash.<< Again, I agree here. Although I believe that there is a considerable gold position short that could add a great deal of fuel when prices turn significantly, It seems they have the muscle to control things, at least at this point. >>In fact, I would suggest that for the sake of the current global financial system, they will do everything possible to prevent gold from regaining value as a "currency". And for this reason I have been hesitant to buy into gold at this time. I believe that with turmoil surrounding the EMU, and their desire create an alternative reserve currency to the dollar, there may be a concerted effort to further undermine gold prices.<< Again, I believe they will not let gold move as to unsettle the currency markets, but if they drive it to far down, they will pay a price also. I am looking for them to loose control of this market, or for someone, who is a great financial competitor, to see an opportunity to turn the tables, such as China or some sort of Asian consortium. Rich

To: Hawkmoon who wrote (25002)	12/28/1998 10:45:00 PM
From: PaulM	Read Replies (3) \| Respond to of 116764

Appreciate the thoughtful post. IMO CB, govt attitudes toward gold aren't uniform. Like you, I take nothing at face value. But I also think that the European CB's deliberately lowered the price of gold in an effort to support the dollar ONLY until their replacement--the Euro--was born. Despite the talk from Armstrong and the rest about "free market" capital flows into U.S. denominated assets, I think private portfolios have been moving out of dollar denominated assets virtually un-interruptedly for decades (with CB buying providing support on the other end). If the dollar collapsed entirely, the U.S. would no longer function as the world's buyer of last resort (and then what?) A global economic disaster. UNLESS, there were another buyer of last resort of equal size. If I'm right, the European CB's will allow the dollar, then U.S. bonds to plummet in 99. I expect this to begin right at the get-go. The gold market should look very different. Of course, you're right, the Euro could fail.