The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ild who wrote (48926)	1/6/2006 8:13:10 PM
From: aknahow	Read Replies (2) of 110194

Thanks for proving my point. "attempts to profit from price inefficiencies" No profit guaranteed. Spread really too narrow to risk selling one and buying the other when there is no guarantee doing so will bring the prices into line. The participant broker/dealers are just performing a function that enables them to capture the sure but small premium. It's risk free and certainly not arbitrage. Arbitrage would also be unseen. Buyers of gold would be selling "overpriced" shares. When the shares that they were selling short fell and permitted covering they would sell their gold. Yet in this case we see the delivery of gold. O.K. I won't continue to beat this into the ground. Can we move ahead as to how to profit from having a pretty good idea of the GLD participant brokers either having bought gold or being ready to buy gold prior to either case having been "disclosed" to the market?

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