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Gold/Mining/Energy : Gold Price Monitor

GDXJ 124.11

-13.6%

Jan 30 4:00 PM EST

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To: ahhaha who wrote (64062)	2/19/2001 9:53:16 PM
From: John Soileau	Read Replies (1) of 116950

Isn't it the case that leased gold is leased by a contango speculator, but is then SOLD by that party into the market? The jewelry fabricator doesn't lease the gold, he actually buys it. As I understand it, the leasing party makes the SALE to the jeweler ( for example), pockets the investment return on the sale proceeds during the lease, but takes on the risk of a POG rise in the meantime. The gold lenders are thus exposed to the prospect of their "leased" gold, now hanging from necks and ears around the world, not being replaced by the lessee. John

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