Gold Derivatives 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 Derivatives

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: IngotWeTrust who wrote (11)	9/22/1998 3:40:00 PM
From: teevee	Read Replies (2) of 39

Hi, The "massive short position" in gold is effectively off market and has no meaningful future impact. It is simply stockpiled gold held by commercial banks and various funds which lend and lease their gold in order to generate a return on their gold holdings. If anything, purchasing "paper" gold(the annual gold options and futures market is over 100 times the size of the market for physical metal-world wide production and consumption) to repay leased/borrowed gold loans is artificially holding the price up at these levels. If you take that out of the market and face the onslaught of Asian net selling (so people can buy something to eat), in my opinion, the price of gold would be much, much lower. This demonstrates that gold can act as a preserver of purchasing power during times of massive currency devaluations. Gold purchases during the good times have are now serving desparate and hungry asians very well.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next