Date: Mon Sep 06 1999 00:26
Gambler ( Old Gold / Armstrong ) ID#434132:
Copyright ¸ 1999 Gambler/Kitco Inc. All rights reserved
It is crystal clear that Armstrong IS short gold. He can deny buying it and then selling it, but he can't deny
borrowing it and selling it. He has used the "gold carry" just as he used the "yen carry," and this is one of the
reasons ( being short yen ) his firm is in big trouble now on their derivitive exposures. Armstrong NEEDS a
lower gold price to bail him out of his sour yen trade.
Some CB officials HAVE personally, greatly benefited from leasing to the bullion banks and/or mining
companies, hedge funds, etc. as they have in some cases been heavily invested ( directly or indirectly ) in the
very institutions they authorized loans to.
At this point in time, this practice is changing because of the concerns about the credit ratings of some of
those institutions. The ratings get worse by the day as interest rates continue to climb. With Y2K at hand, the
CBs are concerned about liquidity problems as corporations compete for cash to have on hand for payroll
and other budgeting matters. Bonds are being dumped for cash and foreign CBs are dumping US treasuries
and converting back into their domestic currencies. Bullion banks and hedge funds ( short gold ) are
vunerable to highly leveraged derivative positions in currencies, bonds, precious metals, commodities, etc.
Knowing this, CBs want their gold back before any defaults occur from rising interest rates.
If just a small number of these banks and hedge funds were to fail, a domino effect would ensue "bringing
down the house of cards" so to speak. Investigations would uncover the irresponsible, criminal nature of the
activities of some CB officers. CBs officials would be blamed for the loss of its gold reserves and in some
cases personally benefiting.
The sustained, rising gold lease rates reflect the current financial risks to the market. It signifies that the game
is up and the rules are changing. Besides, the CBs NEED their gold to keep control of the gold market.
They cannot afford to divest themselves of their fiat currency insurance, gold.
The CBs, bullion banks, Martin Armstrong, etc. would love it for all to sell their gold as they could unwind
their short positions. It would be foolish for Armstrong to take any other position than the one he has. He is
lying!
Someone needs to tell ol' Marty that it AINT GONNA HAPPEN! It's too late for some of you gold shorts!
BUY GOLD! BUY SHARES IN UNHEDGED MINING COMPANIES. DIVERSIFY - geographic
area, gold, platinum, silver, etc. |
