Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 121.87

+3.9%

Jan 6 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Investor-ex! who wrote (18712)	9/13/1998 2:23:00 PM
From: Terry Rose	of 116842

Investor-ex, Approximately 1 trillion dollars is tied into the yen-dollar carry trade. The gold-dollar carry trade mirrors this trade. As evidenced by the large speculator short position in gold there is a lot of money in this trade. As long as the lease rate of gold stays low there is a limit to how high gold can go short-term. Speculative shorts know this and will continue to pile on when gold rallies. I think that there are three scenarios for a gold breakout. 1. Dollar currency devaluation shakes out the short position and forces specs to buy in mass. 2. Lease rates are raised by central banks and specs run for cover since their security blanket has been removed. 3. Gold mining companies decide to quit selling gold forward and buy back their shorts. I agree with your analysis. Terry,

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next