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

To: Bobby Yellin who wrote (3663)	2/22/1999 7:22:00 PM
From: Hawkmoon	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.. Sure they might, were it only Barrick doing the selling. But the competition is also selling so that they could lock in profits on their forward production before gold declines further. Either way, it's like cutting off your nose to spite your face. Selling forward may also be a pre-emptive strike against gold in order to prevent CBs from being enticed to sell. Better to sell your own inventories to control the dollar/gold exchange rate than to let a bank do it first. Mining companies know that we're in deflation, a trend where hard assets normally decline in value. Why else would mining companies sell forward instead of holding inventory for future price increases?? You would think they would hold out. It is enjoyable to follow the propaganda and disinformation coming from all sides. Makes it real hard to figure out who to believe and exactly what agenda they are tracking. One quick example may be the proliferation of radio ads discussing Y2K and gold as a buying opportunity. A contrarian mind might beleive that there would be no vested interest in retails sellers of gold to advertise their products, choosing rather to wait for the public to panic and thus increase the premium on their gold inventories they sell to the public. Hmmmm..... follow the smart money. And right now mining companies (who knows the gold market better), continue to sell forward and that indicates a lack of confidence and conviction about gold. Regards, Ron