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Pastimes : From A to Zeev" -- SI Sacks Zeev -- Ignore unavailable to you. Want to Upgrade?

To: GTC Trader who wrote (607)	5/8/1999 10:12:00 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 708

Happy, I do not know if this guys is discussing an analysis or a wishful thinking, he is completely oblivious to the fact that England sales of gold are minuscule relative to the selling power of all the other C.B. and the IMF. The CB have approximately 10 years of gold production in their vaults, the main producers, SA and Russia are in deep financial upheaval and thus can be counted on selling gold with abandon with any excursion above $300. The writer forgets the basic tenets of supply and demand, until the demand will exceed the supply there is nothing in gold but small rallies that will be stumped by sales. The rallies themselves probably start by the shorts covering some of their stuff and then reselling when the price reaches levels between $290 and $300. The Asian calamity did not cause gold to perk (except in the currencies of the affected nations), why should a major calamity in the stock market be different. Until people understand that gold is no longer a currency of last resort, we are going to hear more of the same, but as I have explained a number of times, tying currencies to gold will doom the world to permanent inflation, the CB's finally recognized this (and quite some time ago) and they are, wisely IMHO and gradually, severing the connection between currencies and gold. Last, what kind of a statement is "the main currencies the Dollar, Euro and Yen are all weak", they are measured against one another, and thus by definition some are strong and some are weak, they can't be all weak simultaneously. Once you you see massive closing of mines, reduction in gold output, and increase in commercial demand,you will see rise in gold, not before, and if the consumption increases, it will be gradual and so will the POG, IMHO. Zeev