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Newmont Mining Corporation Message Board

  • Mennedlog Mennedlog Jul 6, 1999 7:13 PM Flag

    "THE LETTER" ... to Tony Blair ...

    ... was signed by the Chairman & CEO's ...
    of 6 out of the top 7 GOLD mining companies ...

    The ONLY one missing was BARRICK gold ...

    NOW ...
    ... obviously the ONLY reason that "Mr.
    Munk" ...
    ... did not sign "THE LETTER" ...
    was because he was at one of Barrick's mines
    ... with his pick & shovel ...
    ... trying to help
    the GOLD industry's employees ...
    ... and
    ... due to laboring for such a noble cause ...
    he couldn't be disturbed ... !!!

    ... no one should think that because ...
    Barrick is THE largest HEDGER ...
    ... "Mr. MUNK"
    already KNOWS the answer ...
    ... to the question posed
    by the other CEO's ... !!!

    And surely
    ... no one would think that "Mr. Munk" ...
    ... was
    "out there" using Barrick's "picks & shovels"
    ... to BURY the GOLD industry ...
    ... instead of
    helping them dig out some profits ... !!!

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    • "The British public opposes by a margin of five
      to two the government�s plan to sell more than half
      of Britain�s gold reserves, while by a margin of
      more than two to one, the U.S. public opposes the
      Clinton Administration�s support for a proposal that the
      IMF should sell a portion of its gold reserves,
      according to public opinion surveys carried out on behalf
      of the World Gold Council."

      Central bank and
      government sales are affected by public opinion. So, with
      8000 layoffs planned by mining companies and 20,000
      protesting the UK sale, I don't anticipate elected officials
      doing something against the political winds.

      The bottom - you bet. Buy low, sell high. I believe
      Newmont will be at 18 1/2 by Friday and back to 19 in the
      next 2 weeks.

    • Wednesday July-7-99 Bank of England bids gold
      goodbye By Stephen Wyatt The Bank of England last night
      kicked off its gold sales program and auctioned 25
      tonnes of gold, the first in a series of auctions which
      will result in the liquidation of a total of 415
      tonnes of gold or over half of Britain's gold
      reserves.The gold fetched $US261.20/oz ($393.20), virtually in
      line with the market at the time. If there was any
      surprise in the gold market it was that the gold price did
      not rise more than it did prior to the auction."Most
      expected at least a $US5/oz rally. This is very
      disappointing. The market might be short but the shorts look
      comfortable," said Mr Kamal Naqvi, precious metals analyst with
      the Macquarie Bank group.Gold traders said that 25
      tonnes is not a lot of gold and that it would be
      unlikely that a sale of this size could knock the gold
      market sharply lower, especially when the bulk of the
      negative impact of the Bank of England sale had already
      been priced into the market.When the Bank of England
      announced in early May it would be selling 415 tonnes of
      gold by auction, the gold market fell from US$288/oz
      to a 20 year low of US$258/oz.Gold producers,
      however, have been aggressively opposed to the sale. The
      World Gold Council, the body funded by gold producers
      worldwide, has instigated a high-profile public relations
      campaign against the UK sale and has submitted a petition
      against the sale to the UK Chancellor of the Exchequer,
      Mr Gordon Brown.The Bank of England sale has
      attracted massive interest. This is partly because it is
      the Bank of England selling gold. After all it was
      the Bank of England, when Isaac Newton (the apple
      man) was Master of the Mint in 1717, that introduced
      the gold standard.For over 250 years gold played a
      central role in the international economy and was the
      primary backing of the currencies of nation states. In
      the 1960's gold was still the primary reserve asset
      of many of the world's major central banks and
      together they owned over 60 percent of all the gold ever
      mined.And here is the problem. The last 40 years has been a
      period when central banks had to divest themselves of
      gold. Changes in the global financial system, including
      the end of the gold standard in the US in 1971, have
      increasingly marginalised gold as a financial asset, argues Mr
      Andy Smith, precious metals analsyst with Mitsui Busan
      in London.Today, central banks still hold a third of
      the gold ever mined or about 30,000 tonnes. The
      market fears central bank sales will continue to drive
      the gold price lower.
      The Bank of England sale was
      another move to liquidate gold, but it was by a respected
      financial institution. It follows sales by Canada (622
      tonnes since 1979), Belgium (1,000 tonnes since 1988),
      the Netherlands (700 tonnes since 1992), Australia
      (167 tonnes in 1997) and Argentina (124 tonnes in
      And proposed sales of 300 tonnes by the International
      Monetary Fund and 1,300 tonnes by Switzerland - half its
      gold reserves.

      • 1 Reply to goldteck
      • Bill Fleckenstein on gold
        In the
        not-so-precious metals department... The Bank of England tender
        happened early this morning and there were apparently bids
        for five times as much metal as was sold. Within an
        hour after the sale, gold was trading down $3, and
        within a couple hours it was down as much as $8. It
        appears that details were to be released as to what the
        unfilled bids were, but they were delayed in coming out.
        That may have had something to do with the price
        decline. I guess the assumption is that maybe the bids
        were way below the market. In any case, gold bulls
        cannot be happy with today's action, as bullion declined
        $6.80. I made the point that I thought the metal would
        rally coming out of this, and maybe it will still. This
        is certainly not what I expected to see. If it turns
        out there was some confusion and it caused a sell-off
        for a day or so; that's one thing. But if gold
        doesn't immediately start higher in the next 24 hours I
        would think there's some chance we're going to see even
        lower prices. Of course, that development smacked the
        gold stock index for about 6 percent.

32.35-1.48(-4.37%)May 4 4:02 PMEDT