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Gold/Mining/Energy : Gold Price Monitor

GDXJ 106.75

-0.5%

4:00 PM EST

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To: Ken Benes who wrote (34060)	5/17/1999 6:43:00 PM
From: Enigma	Read Replies (1) of 116791

I don't think the producers are the enemies of the gold bugs as you put it. The bank lends the gold - but holds collateral against the producer's reserves. So in a sense the gold is still there - not the same gold obviously - but the bank has a call on physical gold of the producer in future - if it has to collect. I expect that in practice the loans are continuously rolled over. Are you sure that oil producers don't resort to the futures market too? I think they do, at least partially - even the natural gas futures market is used by gas producers. d

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