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Gold/Mining/Energy : Gold Price Monitor

GDXJ 99.85

+6.2%

Nov 24 4:00 PM EST

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To: d:oug who wrote (66858)	4/5/2001 4:59:04 AM
From: goldsheet	Read Replies (1) of 116764

I read the entire Sennholz essay at his site: sennholz.com Lots of good stuff in addition to a few paragraphs on gold. He correctly states what bullion banks have done: "borrowed large quantities of gold from various central banks at rates of one percent or less, then sold it for U.S. dollars and invested the proceeds in U.S. Treasuries at 6 percent or higher." And states the obvious risk - "Such transactions obviously are very profitable but rather risky and potentially ruinous if the price of gold should soar beyond the level at which it was sold, or the gold loan rate should rise and the Treasury rates should fall" I can easily agree with both of the above statements (neither of which are pro-gata or anti-gata). The article does not indicate the actions of the bullion banks are either good or bad, but just points out the inherent risks of such transactions. P.S. Sorry I did not reply sooner, I was busy manipulating my website <grin>

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