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

To: The Barracuda™ who wrote (34812)	6/2/1999 8:30:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 116768

Eureka!. You've hit it. This is the first intelligent point I've heard in a long time. That is almost exactly what is going on. I can't emphasize how important it is to understand how supply attracts price. It is a corollary to Say's Law. On the NYSE one says, "price moves in the direction of orders in the book", and so price declines into the orders booked below. Equivalently, at the bottom price moves up into the orders booked above by all those who still want to get out "cheaply". The same will be happening with the market state of the BOE sale. They want out cheaply. They're "booked above". If you can master this concept, you will begin to understand many ambiguities in the markets. In this particular case it is the availability of large supply publicly announced that makes a transaction in size possible without concession. If a private big buyer attempted to enter the bullion market for 50 tonnes, the price would rise $100 in one day. Contrary to often repeated excuse finding on this thread that speculator sales of leased supply is driving down price, the market is hostage to psychology and psychology alone. That psychology is forcing mining companies to self destruct by selling forward everything including the company treasurer. The panic psychology is bringing about what will destroy them, the rise in the price of gold, because they will have to get supply they don't have at prices below where they can supply it. The companies sell because they fear the large BOE supply when they should be seeing it as an indicator of the bottom. Price is falling because that is what experts believe and it has become a self-fulfilling expectation. It is for this reason that no one can ever succeed at trading, because you have to know how stupid smart guys can get. That is an unbounded quantity whereas how smart they can get is finite, limited, and lowly bounded.