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.

Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (1211)	5/7/1999 1:48:00 PM
From: ahhaha	Respond to of 3558

Thought I'd do some damage control. Let's take these several lines from REUTERS: Analysts said the decision by Britain to sell more than half its gold reserves was a massive blow to the metal. First Suisse and now der Englander. The central banks are getting rid of their gold into private hands. That means they are getting rid of their autonomy or their ability to abuse or debase money and getting rid of their ability to control its value. That would be bearish for gold if gold were high, but the smartest ones sell at the bottom when prosperity is seen to extend forever. "The ultra-negative view, which is justifiable, is that the British are looking to sell before everybody else does," said Kamal Naqvi, metals analyst for Macquarie Equities in London. Have I not said the experts were bearish? How about super bearish. Since they never understood why precious metals move, this conclusion based on supply and demand is so useless that it boggles the mind how these experts are paid by corporations to make stupid statements. Just proves how stupid corporations are. Price isn't determined by event instantaneous supply and demand, rather it is determined by expectations of future conditions. The future condition of the occurrence in the market of a big seller isn't necessarily bearish. It depends upon what is happening then. Supply entering a bullish market allows price to rise! This is the hardest thing to comprehend and it is why the classical economists of the 19th century had it all over the econometrician illiterates of the 20th. Dealers said they expected gold to continue to weaken in the wake of the British gold sales plan. "I think it is hugely significant, I think gold should continue this move a lot lower over the coming weeks but maybe for now we are locked in above $280.00," a dealer said. Can you believe this statement? And I thought Lehman was bad. This guy is saying it's going down later when this gold hits the market, but right now it won't. Markets discount the past. Well, I agree, but not about markets, but about quoted expert opinionists. They make their future judgements based on the past. This is discounting the past that presumably has been discounted by the market. The question is always who is discounting whom? The answer is that the question is not worth asking since it is moot. You will never know what the market is discounting. The price of gold has accounted for far greater negatives than this blip. It is trading at the equivalent of its price in 1965 which was the previous top of great expectations of prosperity forever.