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Gold/Mining/Energy : Gold Price Monitor

GDXJ 93.98

+0.6%

Nov 21 4:00 PM EST

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To: IngotWeTrust who wrote (20574)	10/4/1998 4:11:00 PM
From: Zardoz	Read Replies (1) of 116764

"Even gold producers are turning less bearish. Whereas they had been active buyers of put options, that market has nearly dried up, meaning producers are no longer afraid of downside risk. Now traders say producers have been active sellers of calls, implying they believe the market is stabilizing here." Buyer of Put options, or seller of Call options are each bearish terms. Neither show stability, when you are a producer. Reread the article carefully... My understanding of option/future derivatives suggest that the producer changed strategy, and created a run on gold, so that they could position themself differently. What will happen if suddenly the producers also add by buying put options as well. Than they have a double bearish settlement on the GOLD futures. This smacks of a super bear being set up on gold. I expect to see selling from the new German goverment through their CB soon. Especially if they take on social escapades as predicted by teevee.

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