Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bill Murphy who wrote (3829)	3/2/1999 10:34:00 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 81790

Bill, I have to ask about the news reported in the Financial Times today about how production costs for gold have been reduced by some 17% over the past resulting in even more forward selling by mining companies hoping to lock in profits at these levels. Does the operational cost of mining and refining gold equate to its intrinsic value and rarity? I believe the actual cost for production was averaged at approx $195 to 210 per ounce. Regards, Ron

To: Bill Murphy who wrote (3829)	3/3/1999 4:49:00 AM
From: sea_urchin	Read Replies (2) \| Respond to of 81790

Bill : I hope GATA has big teeth (and deep pockets)! Besides AngloGold, and the big North American producers, it will also have to take on the Australian producers. "Australian gold producers have embraced the benefits of forward-selling gold. Australia's next three years' gold production has already been sold forward at prices above A$600/oz, significantly above current price levels of A$460." bday.co.za Gold enthusiasts may do well to note this admonition : " Meanwhile, the outlook for the gold price, based on forecast production costs, remains dismal. AME forecast the 90 percentile line will fall to $258/oz in 2002."

To: Bill Murphy who wrote (3829)	3/3/1999 7:16:00 AM
From: long-gone	Read Replies (2) \| Respond to of 81790

<<Everything matters now.>> Bill, Got a very nice personal letter from my Senator, Wayne Allard, where he told me he did not agree with the idea that our Federal Reserve had manipulated the price of gold, BUT did forward my E'mail to them and request(firmly) they respond to me & send a copy to his office. At least the question is becoming public. We are no longer "nuts" for thinking something is wrong. Thank you (more than you will ever know) for returning to me some degree of sanity. We all know "sanity" is not determined by what one person believes rather, how society views those beliefs and ideas. When it is only one person he can be dismissed (with ease) as insane. When there two or three which believe the same thing it is considered an "odd group delusion". When only a few hundred hold these very same thoughts sacred, the belief becomes a "movement". In our world the beliefs of entire movement can not be dismissed out of hand, and the first few "nuts" who held faith in these tenets are elevated to a status of "guru". Though I did not want or expect the prestige of a guru, it would be great to be considered something other than "nuts" and maybe even break even and be able to get another decent job. You see, my friend, no one will even hire one viewed as a "delusional psychotic", no matter if he is really zealot or inspired.

To: Bill Murphy who wrote (3829)	3/3/1999 11:40:00 AM
From: jgibbs	Read Replies (2) \| Respond to of 81790

Bill, Maybe someone can give me a quick lesson in Selling Forward 101: 1. If mine production is supposed to increase, if production costs are coming down and the gold price seems to be capped by you know who at 290 bucks, plus or minus, why would anyone pay so much more, sometimes more than 100 dollars an ounce, for future delivery. Why don't they wait and pay less? Why would they pay so much? Who is doing all this forward buying? 3.Doesn't paying what seems to be a lot of extra bucks for future delivery suggest that those who are doing the buying expect gold to increase in value to at least what they are paying for it, other costs taken into account? Still learning, JimG