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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (44970)	1/5/1999 9:54:00 PM
From: Bill Jackson	Respond to of 1572147

Off Topic Jim, If I could predict the future price of gold XAU and derivatives would be a money maker. I went and looked at XAU, and the time is very ripe for some kind of move upwards. Note the closing of the bands. Right now we have a strange situation in gold, with useage exceeding production and recycling by over 1000 tons per year. I think the key is Asian recovery. Remember the USA saw gold drop from $350 to $280+ more or less. Asias currencies devalued by 3-4 times that ratioed fall, and so they all saw gold rise dramatically in their domestic currencies, and useage dried up, as they also had $ shortages by their banks foreign exchange controls. So where will the recovery start? It has started in Japan and India and gold useage there has risen steadily for the last 6 months. China is stabilizing and Indonesia too. So will gold rise? Who knows, it should, but the central bank's hoards are being loaned at 1% interest per annum as gold paper(gold stays in the vault) and then sold and covered by forward sales by major producers. I think Ponzi made this style famous, but the Central banks get their 1% and keep the gold in their vaults and they are happy(gold normally pays no interest, except for this paper method) The gold producers make gold from dirt so they can cover their shorts in the time frame with their own gold, thus guaranteeing a profit. How long can it go on?, it can go for years, but it can collapse suddenly. Indication of collapse are sudden $5-10 jumps in the spot price, followed by a rapid drop and the cartel clamps the lid on. At some time they will not be able to satisfy the need for gold from their own production and from bank sales(real hard gold sales) and the scheme will collapse. Central banks and governments want this to unwind in an orderly manner and so collude and reality is setting in. This is a game for the super rich, Soros, Munk etc are the big players. Bill