Gold Price Monitor 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.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 105.33

+5.2%

Nov 26 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bobby Yellin who wrote (6331)	1/20/1998 2:21:00 PM
From: JD	Read Replies (3) of 116770

Hints of a short squeeze. From USAGOLD daily commentary. Rumours starting about a possible squeeze that may soon occur caused by long positions demanding delivery of metal instead of paper. May not happen but it's interesting to see that the notion is surfacing. USAGOLD 10/20/98 (my bolding ... for skimmers) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MARKET UPDATE (01/20/98) AM----- Gold was off a little in early in New York trading with at least one bullion bank selling into a strong opening. Gold was strong in foreign markets overnight. Hong Kong was up on short covering and bargain hunting. One trader attributed the strong Hong Kong market to Indian buying and Japanese short covering. The overall market has been characterized on the demand side by strong consumption in India and bullion coin sales in the United States at the highest levels since 1987. The market continues to be held in check by hedge fund short-selling. If a large of the longs decide to take delivery -- which is rumored -- a squeeze could develop as early as January 30th, First notice day. On first notice day those with contracts on the COMEX must state their intentions. If they are short, they must confirm their intention if they want to deliver metal. If they are long, they must confirm their intention to take delivery of metal. The rumor (unsubstantiated) we have hear from a reliable source is that there is consortium of buyers who want to take delivery. This same source cautions strongly that he cannot confirm this consortium's intentions. DO NOT TRADE ON THIS RUMOR ALONE. DO YOUR HOMEWORK! One more major factor to be considered is the fact that even a weak recovery in Asia would stimulate very strong gold demand because the currency crisis will remain fresh in investors' minds even as the economy recovers. A good example of this sort of thing is India. They experienced a currency disaster with the Rupee similar to what occurred in the rest of Asia in 1993-94 and this has fueled the record demand growth in India today -- some 700 tons annually, a little over one-third the world's mine production. That's it for now. Have a good day. We will update if anything interesting happens. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ JD PS. I seem to be experiencing a lot of difficulty connecting to SI reently and very slow response times. Anyone else, or should I get out my trusty pipe wrench and tweek my system ???

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next