Dutch Central Bank Sale Announcement Imminent? Message Board

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Politics : Dutch Central Bank Sale Announcement Imminent?

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To: Zardoz who wrote (2510)	12/9/1998 12:16:00 PM
From: Al Cern	Read Replies (1) of 81142

He said, you wrote, I quote "And he said, "This is why the lease rates have gone up lately. The CB have allowed a large short position to be created, so that when the Euro comes on line, they will slowly raise their rates, and the excess demand on short covering will create a steady open market for the excess supply to be purchased. Knowing this, is why the traders have backed out of the gold market, and a small volume can be used to move the spot price. We know that the gold is coming soon, why cover?"" I write. These are the same organizations that leased the gold out in the first place, so in effect they will be selling gold so that they can get it back. Why then wouldn't they just settle in cash with the borrowers instead of this convoluted approach? I think they have finally realized the extent of their own folly and are now scrambling to cut their losses. They are probably buying up future production to cover those potential losses, and are trying to keep the price down while they buy and/or unwind their lease positions. Why else would they constantly barrage us with all those gold sale announcements we are hearing? Sincerely, Al Cern

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