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

To: Ron Everest who wrote (34873)	6/4/1999 6:18:00 PM
From: Ken Benes	Read Replies (1) \| Respond to of 116764

Ron: The 12.5 million ounces of gold sold forward by Barrick is the equivalent of 400 tonnes of gold. This is almost the exact amount to be sold by Britain in the future. If 400 tonnes in sales can knock 30.00 from the price of gold, imagine what would happen if Barrick announced that they would close all of their positions. Extrapolate this to the entire gold industry and it is no mystery why the price of gold is so low. Also, in your note, you refer to an arrangement between Barrick and the bankers who lease the gold. Consider for a moment, Barrick the producer, enters into an agreement with an entity that has no interest in a rising price but stands to profit handsomely by a declining gold price; an entity that also engages the business of hedge funds interested in profiting from the gold carry trade; and finally an entity that has close ties to the central banks. You have to believe that if it is a fact that the central banks want to contain the price of gold and are willing to sell/lease their hoard, they must have a close business relationship with the bankers who have to market the gold. This coordinated effort between the central banks, the investment bankers, and the producers is a cozy arrangement that is profitable for everyone except those who believe gold is a store of wealth. Further, Barrick projects an unparrelled audacity when they complain about low gold prices and the forces that are driving the price of gold. They are the forces and when taken in its totality with the foreign producers, and other domestic producers, it would take nothing short a surprise nuclear attack to promote a rush to gold that would overcome the efforts of this trio. I would love to see Gata take on Barrick rather than the Central Bankers who probably view GATA as nothing more than a gnat funded by the producers to obfuscate the dimensions of the banker/producer relationship. Gold will not move until the producers sever their ties with the central banks. Ken