Precious Metals mutual funds (gold, silver, PGMs) 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.

Strategies & Market Trends : Precious Metals mutual funds (gold, silver, PGMs)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Wade who wrote (805)	11/20/2003 10:09:39 PM
From: Larry S.	Read Replies (2) of 972

Wade, I agree completely. Rates must be a function of demand relative to supply. And, the rates have been coming down as the POG has risen. The additional observation that I have made and still make it that, on a day to day basis, the rates seem to track what is going on. And, essentially every significant move in the POG and been accompanied with an inverse move in the rates (posted the next day). Someone commented recently that they expect a lot of gold traders in BBs to be hauled off to jail soon as the banks realize what they have been doing. I have no idea if this is possible but it makes sense in a way. I find it hard to believe that the higher officers of the banks could be so naive as to believe that they can hold back the POG as commodities in general continue to rise. For several years the carry trade expanded and all of the BBs were making money leasing gold, selling it and then buying treasuries (or even buying stocks). It was a sure bet as interest rates dropped and the POG declined. Then the game changed and interest rates stopped falling and the POG started rising. The bank trader are/were not different than the rest of us and I have no doubt that many failed to get out - it would have impacted their bonus, etc. I keep thinking to myself that the last to get must have awakened but the action of the rates makes me wonder. I've read about how they all bailed out but I was not convinced. It seems clear to me that there are fewer involved and that leasing has less of impact now but I don't think it can be ignored. Sinclair even refers to it occasionally but he sees others having a greater impact today and I'm sure he is right. Enough for now. I've been under the weather today so I had more time to type into the thread than usual. Probably not very helpful but the situation is fascinating to me. Larry

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next