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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Ken Benes who wrote (1242)	6/4/1999 7:20:00 PM
From: Ron Everest	Respond to of 3558

<<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.>> I agree with you that this is a co-ordinated effort which benefits mainly the GBs and ABX and other forward sellers. One needs to keep focused and remember that the gold has been sold. That is what business is about, finding the ways to survive and finding ways to keep your supply at low cost. ABX has done this. Granted, it is not a good thing for those who are not or not able to enter into such agreements. There is a lot of grousing going on, however, when one is on the winning side it looks a lot better. This is a type of Microsoft IMO where volumes of scale just keep getting better. Maybe the gold business needs this kind of shake-up. There are certainly a lot of shaky characters in the gold exploration business. Lots of false reports (including Bre-X), saltings, etc which have shaken the industry to its knees. My view is different than yours in that I believe that the Bre-x's of this world have brought the demise of the juniors. Now, the market will only support a junior with the goods, but not much inbetween, too bad. Future gold prices will be dependant on a reversal of attitudes in a number of areas. As for myself, I'm going to go the sure route - there is little to no risk in ABX at this time, mainly due to their hedging program. Their upside in future times is enormous.

To: Ken Benes who wrote (1242)	6/4/1999 11:48:00 PM
From: Enigma	Respond to of 3558

Ken - I'm afraid this is paranoid nonsense! In this transaction the bank is only interested in the transaction itself - you read too much into things - seeing a conspiracy under every mattress. dd

To: Ken Benes who wrote (1242)	6/5/1999 10:28:00 AM
From: GTC Trader	Read Replies (2) \| Respond to of 3558

<< 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. >> The manipulation of POG and U.S. stock markets are supposedly on the agenda for the Bilderberger meetings which are just finishing up. I think that the facts clearly point to manipulation in both areas. The "plunge protection team" has prevented several near crashes over the last couple years, only perhaps to save the market for an even bigger fall. Two observations regarding POG: 1) When the IMF rushed into Asia to "bail out the countries", they collected huge amounts of gold from the citizens of at least one country. Clearly a maneuver to take gold out of the hands of the populous. (They demanded it. That's what happened.) 2) With Y2K approaching and the demand for gold and silver coins skyrocketing (for valid or invalid reasons, your pick), Clinton's war buddy Blair announces plans to sell off half of England's gold reserves. The XAU, just staring to soar, was cut off at the knees (as was I). Very convenient. Reminiscent of IBM (and T?) announcing huge stock buy-back plans to turn the market on a dime in the midst of the crash of Oct 97. Such announcements do not occur suddenly. This was apparently waiting in the wings until needed. My conclusion is that while many are turning to gold as a safe haven for the turbulent future that is rapidly approaching, the "powers that be" are apparently pulling strings to make gold speculation "profitable for everyone except those who believe gold is a store of wealth". It looks to me like "they" want to convince the populous that gold is no longer a store of value in order to dupe the people into giving their gold back to the governments. If the gold bugs continue to be wrong, why should anyone own gold? The logical conclusion is to sell it. After all, they tell us that Y2K won't be bad anyway. If we had anything to worry about, gold would be over $400 per ounce now, right? "Gold has no value. Gold has no future. Gold doesn't store wealth like it used to. You don't want to own any gold." (they tell us.) Sounds like Tom Sawyer grew up and became a Rochefeller. I heard it said that in Russia, even the past is uncertain. I thought that was very funny until I saw U.S. history changing before my very eyes. The Constitution is not what it used to be. Thomas Jefferson said that anyone willing to give up freedom for security deserves neither. I fear that in the coming years, Americans will give up their freedom in exchange for security which will be quickly fleeting. The Bill of Rights is already being shredded and I needn't comment on the Balance of Powers. Pray for America, buy gold, and prepare for some turbulent years ahead. All that being said, who is to say that they can't drive gold down to $200 ??? The puppeteer seems most adept at making the marienette sing whatever tune he wants! Best wishes to us all -- HB P.S. This may sound like a conspiracy theory, but just remember: all theories are not wrong!

To: Ken Benes who wrote (1242)	6/5/1999 1:08:00 PM
From: Exsrch	Read Replies (1) \| Respond to of 3558

Ken, <<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>> I would reply with the following: 1. It is difficult to pick a point in time and determine the relationship between new CB gold available on the market and spot price changes. It is fear and greed, I think. The fear that more CB, switzerland and IMF may sell gold. 2. ABX can't close out and deliver 12.5 MM ounces all at once that is a practical impossibility (they could borrow more gold to pay for borrowed gold, but why?). ABX only produces ~3.6 MM ounces a year which the market is already aware of. Hence, gold prices have been determined already factoring in ABX's production capability (although I am not a complete believer in the perfect market). Hence, we cannot effectively extrapolate this to the market. Your comments and thoughts would be welcome as would the comments of others. Cheers, Exsrch