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 93.98

+0.6%

Nov 21 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: long-gone who wrote (42385)	10/7/1999 4:32:00 PM
From: Bob Dobbs	Read Replies (3) of 116764

Simple Math & Common Sense: A $66 Billion Problem By John Hathaway <Good article! - Bob> Don't be confused by self-serving outcries from various parties trapped in the gold short squeeze. I am amazed to hear reports that so-and-so has restructured their hedge book or that this or that group has covered its short position in gold. Such statements are misleading, if not false. What is happening is that the self-made victims of the growing gold short squeeze are passing the hot potato back and forth among themselves in a desperate attempt to wriggle free. This activity amounts to little more than frenetic paper shuffling. The gold market is in the throes of a spreading credit crisis. The short squeeze will be over when, and only when, there has been a full repayment of the bullion deposits owed by dealers to the central banks. These deposits are the foundation of the Golden Pyramid described in our recent Themes Express article. Ex repayment of central bank gold, the massive short squeeze we forecast when gold was trading around $250/oz a few weeks ago will continue even if distribution of risk among various players changes slightly with their desperate maneuvers. Let's do the simple math. At 6000 tons, a conservative estimate based on the usual reputable sources, the mark to market value of the short interest in gold at $330/oz is approximately $66 billion. That doesn't sound like a very big number in today's financial markets with flows several multiples of this amount, until you consider how concentrated the exposure is relative to the thin financial resources of the participants. Entire article at: tocqueville.com Bob

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next