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

To: Hawkmoon who wrote (26639)	1/21/1999 10:58:00 AM
From: John Hunt	Read Replies (2) \| Respond to of 116767

Hi Ron, With all due respect, you have probably made this same point at least a dozen times now. I really don't want to start skipping your posts which have some great stuff in them ... but please, give it a rest! Have you had this messiah (saving the world) complex long? < vbg > John << But there is a difference between "rubbing their noses" in the truth, and beating it into them in an all-out, highly disruptive brawl where both parties may suffer. The CB's have the gold and the ability to sell it into the open market. Force their hand and they just may do that and then the public buyers will be left holding the bag trying to find someone to buy out their positions from them. >>

To: Hawkmoon who wrote (26639)	1/21/1999 11:43:00 AM
From: long-gone	Read Replies (1) \| Respond to of 116767

<<You certainly can't demand payment in gold for your paper currency any longer as demand notes no longer exist. And if the CB's sell their holdings of gold into the open market, it would utterly destroy the metal's market value.> Ron, I must again disagree. While the number of countries where currency is limited, you should check out the middle eastern world. Last I knew U.A.E. notes were exchangable as was Kwuait.

To: Hawkmoon who wrote (26639)	1/21/1999 6:49:00 PM
From: Mark Bartlett	Respond to of 116767

Ron, <<However, there are examples where property owners lease the rights to drill for oil on their property, whether those rights are exploited or not.>> Not sure that we are comparing apples and apples with this analogy. In the example you cite, the person holding the lease, is being compensated, whether oil is found or not found. Also, in your example, oil prices are not artificially driven down - there is still a market force in effect that will determine the ROR of the commodity, In the case of gold leasing, the gold is not leased .... it is sold ... the money received is used for investments - and it would appear highly leveraged investments. If you or I got hit with a margin call a la LTCM - who's going to bail us out? So - we have a situation, where not only is a commodities price be driven artificially low, but the proceeds are being used (IMO) for no productive economic purpose. In fact, they apparently have been used to such a wide degree to hedge risk, they are now serving as a hinderance to the economy. Maybe economies were not meant to grow as fast as this one ... perhaps we have a case of giantism on our hands. <<What purpose do CB holdings of gold serve?? They take up storage space. >> I've heard this nonsense before .... a tonne of gold is a little over a cubic foot .... I bet you the volume of most board rooms of the big banks could each hold the volume of gold in most CB's. << And if the CB's sell their holdings of gold into the open market, it would utterly destroy the metal's market value. >> What and deny cheap loans to Hedge Funds<G> << and as a means of preventing the metal from undercutting confidence in the paper denominated currency they issue. >> Which IMHO is the reason the US and EC will continue to hold gold ... and IMO it is even more important now for each to do so. Whereas the US dollar is the reserve currency now, that may not always be the case ... so a little gold for psychological reasons does not hurt. <<I would rather see a happy balance where neither side attempts to destabilize the other.>> Certainly can not argue with that ... I believe that is what most gold and currency holders want ... it's in the best interests of all concerned. <<Now we see goldbugs trying to line the troops in an attempt to give back some of the beating they have taken over the past several year.>> This certainly is not surprising. We all rely on governments to keep a reasonably level playing field.. Clearly, over the last several years in particular, there appear to be certain players that have access to better opportunities. That is not what free markets are all about. We have seem what a lack of transparency has done to Japan .... and it has not been pretty. <<. The CB's have the gold and the ability to sell it into the open market. >> Doubt they would. There are still enough people in the world, that associate gold with a more stable economic environment, for that to happen. Best to you, MB