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

To: Zardoz who wrote (34558)	5/27/1999 6:24:00 AM
From: Mark Bartlett	Read Replies (1) \| Respond to of 116769

Hutch, I read your last post with interest - but the logic is, IMO, a little faulty . <<Who's selling this gold? Well does it really matter... think about it.>> Fact is - very few CBs have actually sold gold - gold demand is very high - but the price continues down. The producers are the ones selling gold .... but it is a survival mechanism. Ken B. Is correct. The reason that Britain is selling gold, is that the western economy is under extreme pressure right now. US can not sell because that would put further upward pressure on their dollar. The US trade deficit is very high now. As the US dollar increases (as it is) it will get worse. Further, the ones that are crying for gold sales to help the poor, would love to raise the price of gold to help them. It is clearly the better way - but they are handcuffed because it could tank the US dollar, causing a flight out of US equities, and a lower US dollar. This gold selling is not something that most CBs want .... it is borne of extreme desperation - that is why there has been very few sales - but lots of talk of sales. The fact that the UK is selling a al Korea and Malaysia last year, is because things are extremely desperate. Canada sold its gold, because it was desperate for cash ..... a key sign that we were in trouble. Our economy was in trouble and we sold gold .... the fact is - it is the ones that are able to hang on to their gold that are the strongest. This premise (that you seem to support) that countries are better off without gold is not sound. Countries that have sold their gold have been the ones in trouble and the ones that have seen their currencies hurt. It is already happening in the UK - 2 weeks after they announced their gold sales. Look at the coupon passes the US is doing .... another sign of desperation. Facts as I see them - at the present moment, we are sitting on a very dangerous precipice ..... it would take very little disruption for the whole damn house of cards to go poooff! Forget about the Asian recovery it ain't happening. This new-found wealth that many think they have is just an illusion - it was built on borrowing and leverage and that is reason it will go into the dumpers ... sooner or later. Paul Volker is right - the world economy is being held together by 50 stocks that have yet to earn any money .... need anyone say any more? Best to all, MB