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Gold/Mining/Energy : Gold Price Monitor
GDXJ 145.00+2.0%4:00 PM EST
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To: IngotWeTrust who wrote (75829)9/3/2001 3:45:42 PM
From: clochard  Read Replies (2) of 116906
 
By encouraging people to buy gold in the form of computerised accounts instead of taking physical posession, and then lending it out, banks do the same with gold as they do with dollars. A little goes a long way because they only need a fraction of the amount lent out. They lack the ability to actually print it, and are limited by the fractional requirement (which is determined empirically probably) but the effect is there: the gold can be sold many times, therefore suppressing its price. If the physical demand ever rises a lot, they and a lot of others will be dead meat.
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