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Gold/Mining/Energy : Gold Price Monitor

GDXJ 121.93

+0.8%

Jan 9 4:00 PM EST

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To: Ronald Russell who wrote (39052)	8/15/1999 5:42:00 PM
From: Rarebird	Read Replies (1) of 116845

Ronald Russell: We are involved to a certain extent in speculation here. Here is another point of view from Kaplan: KAPLAN'S CORNER: Question (from Mr. Mark Hollman): With Goldman Sachs cornering half of the available COMEX gold warehouse stocks, couldn't they use this control to depress the price, instead of to push it higher? Answer: Of course they could. However, the whole point of cornering the market is to achieve a financial gain by forcing others to panic. Since speculators are heavily net short, they will benefit more from a price decline, while commercials will simply accumulate more. There will thus be no panic and no windfall. However, if the price of gold rises, speculators--who have no physical gold to deliver--will be forced to scramble for the yellow metal to cover their positions. There could thus be a sharp upward spike, benefiting anyone who went long immediately prior to its occurrence... goldminingoutlook.com PS I find Kaplan's response to Goldman's cornering half of the available Comex Warehouse stocks to be the most logical: they stand to profit more from a price decline here.

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