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Gold/Mining/Energy : Gold Price Monitor

GDXJ 105.33

+5.2%

Nov 26 4:00 PM EST

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To: lorne who wrote (33706)	5/12/1999 1:59:00 PM
From: donald martin	Read Replies (1) of 116768

<<...its announced sale will not have much impact on the physical market because the gold is essentially already in the market...>>> OK, I'm kind of floundering here, but bear with me please... How many entities (investors, institutions, etc.) who "own" gold have the gold? and how many just have a piece of paper saying they have gold? I don't know exactly how the commodity exchange rules for physical stocks work. But, let's say in a warehouse somewhere there's 100 ounces of gold. And the owner of the warehouse has on his books customers with long positions of 200 ounces of gold and short positions of 100 ounces of gold. If the owners of 120 ounces of gold wanted to sell their gold, unless they could find a buyer willing to hold a "receipt" instead of the physical product itself, where would the other 20 ounces come from? I don't believe the gold is already in the market. What I don't understand is, with the well-known short positions outstanding in gold right now, why don't the people who have long positions demand physical delivery?

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