<<The gold producers should act jointly, announcing that they no longer will sell gold forward and that they will be looking to covered there forward positions. The elimination of gold hedging, will cause the speculators to cover their short position, and the the entire gold lease program would begin to reel.>>
Ken,
Please allow me to respond to your thoughts.
You bring up several interesting moral dilemma, which I've already addressed in my own mind for as I own parts of several mining concerns if a attempt to persuade the elimination of forward sales with-in each company am I there-by as guilty of market manipulation as those I rail against? My answer (after a great level of self soul searching) is "No", for I feel the price is artificially depressed, and I'm not attempting to achieve any specific "set point" in pricing. It is rather obvious, from timing of news releases from Central Banks and the IMF related to the price of gold, that there is not only manipulation lower currently, but also that there is a per-determined "set point" at which they will not allow gold to move above with-out "correction".
If the mining companies were to conspire to manipulate the price higher, they would likewise be as guilty of collusion as I believe those are which are on the opposite (short)side of the trade. The answer to market manipulation and conspiracy can not be more of the same.
I'm reminded of a quote from a Firesign Theater record of years ago, "Two wrongs never make a right, but three do". Were this humor, not satire, I would also have to disagree.
As for the requested actions by Congress and other government factions by GATA, unless one is to take a absolute liaise-faire attitude toward the inter-relationship between the markets, business, and government, the redress of grievance is our right and the assurance of a free market their duty!
If we were to here-in decide to push all mining concerns to reduce or eliminate these very forward sales would we not be equally guilty? (In my mind)Only if we had the same specific "set-point" at which we were attempting to drive the price of gold or could even we derive between ourselves the assurance of the current direction by which gold is manipulated(Hutch agrees that gold is manipulated, just in the opposite direction). I there-for do not request of others any actions concerning forward sales which I believe would be conspiring to manipulate the price of gold via their communications with the gold producers which they might hold. I only want to assure there Is a fair market for all concerned.
BUT, If everyone decides(on their own) to contact their gold holdings requesting(unknown) actions related forward sales I:
a) don't want to know
b) applaud their actions |
