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To: Hawkmoon who wrote (26774)	1/22/1999 12:44:00 PM
From: donald martin	Read Replies (1) \| Respond to of 116857

<<And yes, I believe the systemic shock would be devastating, as gold attacks the value of the global reserve currencies (rightly or wrongly).>> Gold will not attack the "value" of the global reserve currencies. Gold is merely an illuminator whose value is relatively constant. It's like a monetary flashlight. It's paper whose value fluctuates depending upon the discipline of the people charged with printing it. When gold appears to "attack" the value of currencies, it's merely people saying, "Your paper doesn't represent a reasonable store of value to me."

To: Hawkmoon who wrote (26774)	1/22/1999 1:48:00 PM
From: Enigma	Read Replies (1) \| Respond to of 116857

Ron<<Thus, my argument that the CB's will sell their gold to keep the gold market down until their ready to let it go up>> But this is a myth surely? It's been pointed out I don't know how many times that some CB's sell gold and others buy - a recent posting pointed out that a majority of European CB's gold reserves have actually increased over the last 18 months or so. The myth of CB selling persists because only the sales are reported by the media and research types. I'm personally a little sceptical about the rumoured vast short positions of certain institutions - because I think that in the marketplace there will always be those who will try to profit from such an inbalance - or else a powerful entity might enter the spot market - just as Buffett did with silver, or else you might see a concerted effort by a group of producers to unwind their hedge positions. None of this is happening. I concede that the gold leasing situation has had a powerful effect. the simple explanation is surely that the market for gold is more or less in balance now? dd

To: Hawkmoon who wrote (26774)	1/23/1999 12:44:00 PM
From: Mark Bartlett	Read Replies (1) \| Respond to of 116857

Ron, <<I'm saying that any surge in gold prices at this time will destroy the "belief" in the Fiat system. In exchange, surging gold prices would strenghten an alternative and "superficial" belief in gold.>> I do not buy this ... gold, as an alterative haven for money protection is just as legitimate as any other. For some reason gold is feared at the moment (likely because the powers that be want to maintain the integrity of their fiat system) ... and it seems every time the global economy looks more tenuous, the more it is feared (attacked). Fiat systems should be feared ... they have always become unraveled at some point in time. IMO gold's role should be to create a more stable fiat system ... there is an honesty and integrity with gold, that is IMO worth preserving. Best to you, MB