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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (33394)	5/7/1999 7:31:00 PM
From: Investor-ex!	Read Replies (1) \| Respond to of 116764

Let's rummage through today's debris and see if there's a golden lining in this to be had. Switzerland (a banking center and 'responsible' gold holder) proposes (so as not to 'disrupt') a largish series of future sales, contingent upon future popular referendum. Initial announcements have profound effect. Additional rehashes of the announcement have less and less effect. Gold bases and begins to rally. The IMF (the central bankers' cabana boy and 'responsible' gold holder) proposes (so as not to 'disrupt') a less large though more earnest series of future sales, contingent upon member banks' approval. Initial announcements have profound effect. Additional rehashes of the announcement have less and less effect. Gold bases and begins to rally, strongly. The UK (a banking center and 'responsible' gold holder and trader) proposes (so as not to 'disrupt') a very largish (for them) and immediate series of sales, apparently requiring no one's approval (though I can't help but wonder what informed Brits think of this). The initial announcement has had a profound effect. Gold loses a bunch and... A few things stand out here, and maybe not all are 'coincidental': The rationalizations accompanying each of these 'announcements' is odd. The 'announcements' themselves are illogical from a pricing perspective. These proposals are being driven from the highest levels -- Switzerland, IMF, Bank of England. The announcements are occurring as rapidly as the effect of prior sales announcements appear to lose their ability to hold the market down. The 'day of proposed sale' is becoming more immediate, more certain (by necessity it would appear), with each announcement. Oddly enough, each 'sale' announcement is accompanied with one or more "we're not selling" announcements from other quarters. This appears to add up to desperation in relation to the possibility of an upside breakout. Is this desperation currency-related, Y2k-related, derivatives-related, all three, others? Will the third time be the charm? I'm guessing after the initial shock of the Bank of England suddenly and out-of-the-blue deciding to dump 60% of its gold reserves down to a 7% level compared to the G7 average of 17% wears off, a more rational analysis will show that the B of E sales are, in actuality, a drop in the daily gold trade bucket. However, I'm not guessing we will hear each and every sale announced repeatedly before, during, and after the 'sale' is completed. The goal appears to be, not to drive gold down, per se, but simply to keep gold from rising. (By extension, the market seems to be telling us we should be selling options straddles for the time being). The most interesting development in all this is that it is becoming ludicrously obvious what's going on. Hence, the effect seems to diminish with each iteration as more and more participants catch on, even as the 'announcements' become more shrill. These efforts might work, they might wash out the precious metals market for good, but I find it highly doubtful. "They" probably find it highly doubtful too, but "they're" in a box, so "they" have to keep trying. All we have to do is wait, or, if one is quick and correct, anticipate. I, for one, prefer to discount the 'pronouncements' of officialdom and its minions: "Everything the state says is a lie; everything it has, it has stolen." - Friederich Nietzche And, in keeping with our golden theme: "Everything the government touches turns to crap. It's a reverse Midas touch." (Paul Craig Roberts)