Who'sbuying all the GOLD?? Andy??

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I heard the Bank of England had another sell off of its gold reserve this week and the price went up? Who's buying all this gold. Comments made by the spinmeisters at CNBC were" Gold, nobody cares about gold anymore. But then again, nobody will care until is matters again".

-- y2k dave (xsdaa111@hotmail.com), September 25, 1999

Answers

Gold mining companies trying to cover their shorts.

They couldn't possibly mine that much gold in a reasonable time.

This will continue to be a huge boost to gold as more of the derivative contracts are unwound. I estimate the upside potential at $1000/oz.

An oz. of gold has always bought a "good" mans suit until recently. It will soon revert to the index.

-- LM (latemarch@usa.net), September 25, 1999.


See this link to confirm the above opinion.

Link to Gold Eagle< /a>

-- LM (
latemarch@usa.net), September 25, 1999.


Let's try that again.

Link to Gold Eagle

-- LM (latemarch@usa.net), September 25, 1999.


I am SO CLUELESS. Sigh. I read the goldeagle stuff and most of it just passes me by... different language. But then a couple of years ago that was true of Y2K. Guess I'll just keep reading and hope it starts coming clear. Did have a funny conversation with my stockbroker a couple of days ago. He wanted to know why I wanted to sell and whether I wanted to reinvest. When I told him I was interested in gold... physical possession, he started through this whole series of questions. Even indicated it was sort of required so they could assess the psycological or mental condition of the client.. make sure I wasn't headed off the deep end. (stockbrokers... a caring profession -LOL!-) Then he started looking at the charts... lots of hmmm... HMMM! Maybe not so crazy after all. Wonder if he'll rethink HIS positions. Ha!

-- Linda (lwmb@psln.com), September 25, 1999.

Yes Linda, they do have thier own language. Unless you have "played" the derivative markets it isn't always clear.

Buy gold, take possesion (not in your brokers vault in yours). The window of opportunity is closing.

Just my opinion, make up your own mind and diversify.

I'm diversified into food, ammo, seed and gold ;^)

-- LM (latemarch@usa.net), September 25, 1999.



I'm diversified into food, ammo, seed and gold ;^)

And "Y2K cash".. toilet paper!

-- Linda (lwmb@psln.com), September 25, 1999.


I started selling of my Crisco and buying Eagles. I didn't think i would have this kind of impact on the price though.

Fat rules!

-- The Count of Meijer Crisco (40@cansof.course), September 25, 1999.


Why do you say the window of opportunity is closing? Just curious. I think some gold purchase is prudent for asset protectiobn. Didn't think so at first. But now I believe it's worth a shot, given that one must diversify before the market crashes.

-- Mara Wayne (MaraWayne@aol.com), September 25, 1999.

Thanks LM,

I was able to get through most of the tech talk and stuff and found alot of info useful. I did hear the CNBC spinmeisters put down gold in a big way and until someone mentioned it here, I did not know the BOE was selling gold again. I do believe we haven't seen the top of this market.

-- y2k dave (xsdaa111@hotmail.com), September 25, 1999.


Mara,

The window of opportunity is narrow because the sweep up in the price will be quite rapid and steep (that's redundant).

Yes you can always buy gold but will you want to purchase it at $1000/oz. when you could have bought at $270?

Buy low. Sell high.

-- LM (latemarch@usa.net), September 25, 1999.



OK LM when is it going to really move? I'm such a procrastinator that I have put this off till now. It's going to take a while to get my $ turned into gold. I'm talking a few weeks. Do I have time?

-- The Count of Meijer Crisco (40@cansof.course), September 25, 1999.

'Even indicated it was sort of required so they could assess the psycological or mental condition of the client.. make sure I wasn't headed off the deep end.'

They just want to make certain you aren't going to come back with guns ablazin'...next they will require an official mental health evaluation at your local psych to verify your ability to make any decision for yourself.

Can't believe any stock broker would dare to present himself as capable of determining anyone's mental stability. But you know this may be as off the wall as the banker's sermon for the churches, or where there's smoke there may be fire. At this point I am beyond being surprised at what the financial institutions of this country will try to manipulate into their sphere of control.

-- Shelia (Shelia@active-stream.com), September 25, 1999.


Count, the way it works is you and the dealer agree on the price you will pay and the amount that you will buy, and that is then locked in. If the price of gold doubled, or if it halved, it would not matter -- the price agreed is the price that you pay. The mechanics are that after the price is agreed to, you then have 48 hours or so to send a check by U.S. mail (postmarked), and after it clears, the gold is shipped to you.

A place that I have done business with and seemed to have the cheapest prices in the past: www.ajpm.com

-- Jack (jsprat@eld.net), September 25, 1999.

yeah I know Jack but thats only good for 48 hrs. and it'll take me at least 2 weeks to round up all my $$. I was even considering taking a equity line of credit on my house and using that but even then that takes afew days to a week. i just don't want to think I've put it off to long.

What is going to be the trigger effect that makes it shoot up?

-- The Count of Meijer Crisco (40@cansof.course), September 25, 1999.


:"What is going to be the trigger effect that makes it shoot up"

IMHO it is going to be a slow rise for the next two months or so. The trigger is going to be common perception that y2k is going to be worse than anyone thought, or an old fashioned sell-off in stocks. The latter may have already started, the former has not, and probably won't until late November or December when the systems start falling down.

-- Jim the Window Washer (Rational@man.com), September 25, 1999.



LM (or anybody else).. let me try this out and you can tell me if my reasoning is at all close to the mark. When you say the window of opportunity is small and the price rise is likely to be steep - which I also think may be the situation - is it not only because demand may skyrocket between now and the end of the year as people seek safe havens against electronic glitches... but also because oil money will lead (continue to lead) the international "flight to quality" and as the Euro is linked to gold (and the dollar is not) the flight will be FROM dollars (based on debt) TO gold or Euros. Close? Off base? So the rise in price of gold for us in the U.S. will be not so much because of supply/demand, but an indication of the fall of the dollar against the stable value of gold. Yes/No?

-- Linda (lwmb@psln.com), September 25, 1999.

While Gold seems the rage, I keep wondering why no one talks much about Platinum Eagles. In millions of dollars, we import more platinum than silver or gold. Platinum is more scarce, requires much more sophisticated technologies to get from a mile deep to bullion form, and the two countries that represent most of platinum production are SOL. Of course, platinum is also an important industrial commodity. Finally, the mark up on Gold and Silver Eagles is higher than the mark up on Platinum Eagles. And, I think (but I could be wrong), previous Executive Orders do not include the confiscation of platinum bullion.

Andy, could you explain to me why you don't recommend Platinum eagles?

Sincerely, Stan Faryna

-- Stan Faryna (faryna@groupmail.com), September 25, 1999.


Lets all remember that, just as we acknowledge somewhat incredulously that Y2K could turn out to be a bump in the road, we should also remember that gold could suddenly plunge -- nobody knows. I surely would not go into debt to buy gold; but, thats just me, someone else might do it and make a fortune. Nobody knows.

-- Jack (jsprat@eld.~net), September 25, 1999.

Platinum does not have the long history of acceptance that gold (and silver) does. Gold is beautiful and easily recognized as something of value throughout the world.

Platinum also derives much of it's value from it's industrial uses. Industrial demand will plummet with the onset of Y2k.

-- Farmbeet (farmbeets@farmin.com), September 25, 1999.


Stan - farmbeet answered it.

I believe we are heading for hyper-inflation here in the USA next year. COMEX and the LBMA are in danger of defaulting. The US Dollar has no gold backing, and we are in debt up the kazoo.

Gold should now be valued at circa $10,000 per oz. IMHO.

In January 1980, spot gold traded at $850 per troy ounce while the Dow Jones Industrial Average was about 800, thus putting gold "above" the Dow. At 3:24:28 p.m. EDT on Wednesday, August 25, 1999, the Dow was at 11,334.59 while spot gold was at $252.40 per troy ounce spot, making the Dow worth more than 44.9 troy ounces of the yellow metal, a new all-time record. As the bear market approaches its inevitable nadir, we might see the Dow at 2100 (dividend yield 7.5%, indicating a moderately severe bear market bottom) and gold at $1050 per ounce (adjusted for inflation, equal to its average price from 1979 through 1983), creating a 2:1 Dow:gold ratio. Since panic bottoms often follow euphoric tops, and vice versa, one could imagine the Dow at 1750 (dividend yield 9%; it was 11% in July 1932) with gold at $1750 per ounce (adjusted for inflation, its January 1980 peak will top $2000 per ounce in a few years), thereby achieving parity once again. If these numbers seem absurd, consider what an investor from any month in the early 1980s would think upon getting a sneak preview of the financial section of today's newspaper!

Get some while you can - things are gonna go nuts and this is your last chance.

-- Andy (2000EOD@prodigy.net), September 25, 1999.


Actually, we are at a very critcal price NOW for gold. If you have ever read "AT THE CREST OF THE TIDAL WAVE" by BOB PRECHTER, he said, in 1996, that gold was in a secular bear market, and would continue to be, until it bottomed around US$180/oz. Last month, in his monthly issue EWFF, he showed the latest wave count that showed an upward "correction"(because it goes against the main, biggger degree trend)that would take gold up to around $268/oz.Then the downward trend channel would resume. Guess where gold is NOW? If he is correct, and he has NOT been wrong on gold for over 20 years!, then gold will peak here and head down to its ultimate low of between $180 and $120, with a HIGHER probability of the LOWER target being hit. This would be in up to a few years out. Argue all you want, I'm just stating what has been charted.

-- profit_of_doom (doom@helltopay.ca), September 25, 1999.

profit_of_doom: Are you always this much fun?? Talk about raining on a parade! In any case, with Y2K, the amount of "nervousness" out there could surely cause anything to happen anytime -- and there is not much historical precedent for something like this, either....

-- King of Spain (madrid@aol.cum), September 25, 1999.

POD,

It is possible that gold could go sub 200 - that means another buying oppeortunity.

When will you folks get it? It's a long term thing. It's wealth preservation. It's not about making a killing, though that WILL happen IMHO.

The dollar is tanking now, and a default is on the cards next year. get out now while you can.

-- Andy (2000EOD@prodigy.net), September 25, 1999.


Andy,

I appreciate your gold bug attitude and the rally behind gold. I enjoy your enthusiasm. And if I had a little wealth to preserve, I might very well attempt to preserve it with silver, gold, and platinum. But if Gold went below 200 per ounce, I'd probably make some exceptions!

Sincerely, Stan Faryna

-- Stan Faryna (faryna@groupmail.com), September 25, 1999.


Stan :)

Consider this.... we are talking about "value"...

Let's say we had four equal stacks of dollars and we today took one stack to buy a year's supply of bread, and then spent two of the remaining three stacks to acquire a pile each of Gold (small pile) and silver (large pile). Right now they are all equivalent values...the dollars, the bread, the Gold, and the silver. Roll the clock forward, well beyond any Y2K mess, or lacking that, simply past the day of reckoning when the dollar folds, and let's re-examine our pile of equivalents.

Ok, our year supply of bread is gone, because we ate it. The remaining stack of dollars will now only buy us a two-week supply of bread, the large silver pile will buy us a year supply of bread, and the small Gold pile will buy us enough bread to last for twenty years.

-- Andy (2000EOD@prodigy.net), September 25, 1999.


Uh, Stan...

Gold Posts Biggest Gain in Decade as European Central Banks to Limit Sales By Vaughan Scully

Gold Prices Soar as European Central Banks Act to Limit Sales

Sydney, Sept. 27 (Bloomberg) -- Gold prices posted their largest gain in more than a decade after a group of European central banks said they will limit sales from their official reserves to 400 metric tons annually for the next five years.

Gold for immediate delivery jumped as much as US$17.75 an ounce, or 6.6 percent, the largest one-day rise in at least 15 years, to US$286.50, its highest price since May 7. The move outpaced the 3.4 percent gain for gold following the stock market crash in October, 1987. ``As far as the market is concerned, it's very positive,'' said Chris Hunt, manager of bullion services for Bank of Western Australia in Perth. Concern that new sales could emerge, driving gold prices down further, ``is now removed,'' he said.

A group of 11 central banks around Europe, as well as the Bank of England, the Swiss National Bank and the Swedish Riksbank, who together hold for about half the world gold reserves, pledged to limit their sales to those that already have been announced. Gold sales by central banks, particularly from England and Switzerland, helped push gold prices to a 20-year low of US$251.95 an ounce in August.

The surge today comes after a one-week rally that pushed gold prices up US$13.75 an ounce, or 5.4 percent, after a sale of 25 metric tons by the Bank of England drew unexpectedly strong demand and above market prices.

With central bank sales now under control, the balance of supply and demand appears much more favorable to higher gold prices, Hunt said. ``The market can reasonably absorb'' the 400 tons of gold to be divested from official reserves, Hunt said. ``There's a probably seven to 10 percent drop in production because of the low prices. Add to that exploration is at five, six or seven-year lows, and it leaves a handsome gap for the sales to fill.''

Central banks have sold between 80 metric tons and 600 tons a year for the past decade, Hunt said, so the future rate of sales is ``nothing unusual.''

-- Andy (2000EOD@prodigy.net), September 27, 1999.


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