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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (3662)	2/22/1999 7:10:00 PM
From: Bobby Yellin	Read Replies (1) \| Respond to of 81884

Barrick etc could be also selling forward to try to destroy the competition and then pick them up on fire sales..

To: Hawkmoon who wrote (3662)	2/22/1999 7:24:00 PM
From: sea_urchin	Read Replies (2) \| Respond to of 81884

Ron : Re "... gold mining companies lowering their cost of extraction. Thus they are inflating the supply of gold, and thus lowering its value by increasing supply." Without doubt. I call it "Dog eats dog". The companies which can forward-sell the most and lower their costs the most will survive. The remainder will go to the wall or be "eaten up". What choice have they? If there was a conspiracy, or even a cartel like in diamonds, the miners could with-hold production in order to drive up prices. As I see it, the mines, like their shareholders, are just struggling to survive. I can't envisage a collapse of the gold market even in reaction to Y2K fears or whatever. It's just that gold is no longer what it was. It is no longer the linch-pin of the financial system. One only has to read the reports of the World Gold Council to see that they are trying, by all means, to increase the demand for the yellow whether by jewellery, or investment or coins or art-work or whatever. Gold still has a value. But investors have to recognise that gold is no longer crucial to the survival of the financial system. For this reason, one can't blame the CBs for off-loading their stash, either directly or indirectly through gold loans. I would do the same. Liquiditity is essential in any investment situation and to be stuck with an excessive amount of any investment one cannot get rid of easily is a cause for anxiety. Especially if it's falling in value. Problem with gold is that all the gold ever mined is still around. If only gold was a consumable --- like Coca Cola --- then it would be valuable! PS. I remember 1982. Only too well. And the years that followed.