SI
SI
discoversearch

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.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: pater tenebrarum who wrote (31133)10/25/2000 11:59:08 AM
From: Perspective  Read Replies (2) of 436258
 
Heinz, one thing I've been wondering about a great deal lately is a remark you made a few days back. When we opened with DJIA down 400+ points, you said gold was briefly up a few bucks, and then it immediately got buried. You speculated that someone (and I can't remember who) leased a huge chunk of gold, sold it short, and took the proceeds to prop up the stock futures.

Is there evidence to support this? Is it true that the lease rate on gold is really just 1% per year? Is there a way to gauge how much gold remains that can be shorted in this fashion? What kind of collateral are the borrowers putting up?

I've never been too interested in gold from an investment standpoint because it is a non-productive asset, but if this is true, it seems like an artificial mechanism that is bound to be reversed, and the potential swing in gold prices could be huge.

BC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News