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

To: baystock who wrote (34817)	6/3/1999 1:23:00 AM
From: ahhaha	Respond to of 116770

Who says their future production cost is fixed? If they sell at 260 and much of what they can deliver is now at 200, there is not much problem, but equity appreciation is capped. On the other hand if inflation causes production cost to rise to 300 instead of 200, they lose regardless of how high the future price. They have to mine at a loss or they have to mine at a declining margin racing against their own miner's wage demands driven by UAW and other "Luddites". Some strategy, to bet against the only circumstance that will prevent you from going bust immediately, since all gold mining companies must go bust eventually. Can there be any doubt about that, 'Bugs? Their experts told them that price of gold is determined by supply and demand although that has never been the case. Gold has always been priced by emotion and psychology. The psychology is finally starting to change, but the mining companies can't see it. They know what they need to know and that is that gold is worthless. Therefore, there is no contingency for buying on the open market. The finest minds have computed that that is impossible. The mining companies won't have a cent to buy on the open market and they won't be able to deliver fast enough to avoid it. Margin call? How about federal marshals kicking down the door. They won't find a thing because the officers and records will be on the Cayman Islands or Cuba.