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Gold/Mining/Energy : Gold & Gold Stock Analysis

GLD 389.05

+0.4%

Dec 10 4:00 PM EST

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To: The Vet who wrote (12168)	2/24/2008 10:41:52 AM
From: tyc:>	Read Replies (1) of 29622

>>the shorts simply create more stock than there is gold to back it. I agree, but this is not peculiar to shorts of GLD. It is true for ALL shorts,( I am not talking about only naked shorts). Even when a share is "borrowed" to allow a short sale, after the share has been shorted there are now two people who own that share. The same applies when gold is shorted. There was talk on another thread about ABX's forward sales. When a CB leased gold to enable it to be "sold forward", it retained ownership of the gold that was sold to someone else.... again two owners of the same gold.... And the second owner might also "lend" it to enable it to be sold once again, making three owners etc. Why then do you say that the situation with GLD is unusually hazardous ?(IMHO it is hazardous to the shorter.. who has backed a loser, i.e. fiat).

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