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

To: Zardoz who wrote (34381)	5/23/1999 8:05:00 AM
From: lorne	Read Replies (2) \| Respond to of 116764

Hello Hutch. ........" Or gold is bounded by its cost of extraction on one end and the amount people are willing to over pay for it on the other. Currencies have gone defunct many times before. To assume that all currencies will surrender and gold would shine is to assume that your government would allow it's system of debt-based money to default. If that is the case in USA, forget about gold, go straight for the guns! "........ I think the USA and others do fear that their debt based system of money may default and this is why they hold such large reserve of gold. They know that gold is the currency of last resort and is excepted world wide as payment of debt. It just seems to me that the more they try to talk down the POG the closer we may be to the time when debt based money may default. Even Greenspan and Rubin state USA should not sell any gold reserves of course those 2 in my opinion are the least honest people on the planet. It appears to me that to announce gold sales in the manner that England did is to openly admit desperation. Take care Lorne

To: Zardoz who wrote (34381)	5/23/1999 8:40:00 AM
From: Enigma	Respond to of 116764

"But why do so many assume it's undervalued? Read a financial statement and see how much it costs to dig up. Skip explorations costs of juniors. Most juniors have no interest in finding anything" Aren't you arguing against yourself? - if you read enough financial statements you will see that it costs plenty to dig up - in fact many producers are on the bubble, and the recent rise in the Can. and Aus. $s has made things much tighter in those countries too. Your remark about juniors is questionable too - most juniors hope against hope they will find something - preferably something BIG - it's the engine that keeps hopes alive - and the engine that leads to many discoveries - if not most. If the Salamon report is right - the dangers on the short side are manifest - and if many mines are marginal - the supply side is vulnerable.

To: Zardoz who wrote (34381)	5/23/1999 4:26:00 PM
From: Investor-ex!	Respond to of 116764

Hutch, Or gold is bounded by its cost of extraction on one end and the amount people are willing to over pay for it on the other. The price people are willing to pay is gold's market price, not it's theoretical bounds. Currencies have gone defunct many times before. Debt-based, non-convertible currencies have always gone defunct. To assume that all currencies will surrender and gold would shine is to assume that your government would allow it's system of debt-based money to default. If that is the case in USA, forget about gold, go straight for the guns! I've simply listed what I believe to be the bounds of gold's value. There is no implicit assumption that either boundary will be reached. And much can and will be done before either extreme is reached. The world does not have to instantaneously collapse for gold to begin its progression in the direction of its upper bound value, though to the haters of an honest monetary system, this may seem like the case. But let's assume that your explaination [sic] is what is holding gold up. Where do you think it'll be after Y2K, or if Euroland failed, and USA doesn't.[?] Higher. Even in the ABSOLUTE WORST CASE SCENARIO of markets breakdowns, and debt defaults. Don't you think that USA would jump to a 'NON-TRANSFERENCE of GOLD ASSETS PROHIBITION LAW' First, the "worst case scenario" is unlikely, so to build an argument against the prudent deversification into gold based on this possibility is highly suspect. Still, let's entertain this notion as a theoretical exercise. First, your "non-transference" reaction won't work, just like any form of price-fixing or prohibition ultimately doesn't work. Only the true non-interference of the free market works. Second, one does not have to "transfer" one's assets in order to enjoy the benefit of those assets. Guns & Butter, GOLD & Wheat Remember economics 101 More like Bread & Circuses, circa 1999. Economics 101: Supply and Demand. Increased demand for "money", supply meets demand via unhindered debt expansion. Increased demand for paper gold (because the physical cannot be supplied at market prices), supply meets demand via derivatives contracts, options, and futures. Increased demand for physical gold, price meets supply?