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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Zardoz who wrote (38242)	8/3/1999 10:32:00 AM
From: Enigma	Read Replies (2) \| Respond to of 116753

Surely a forward sale means that there will be an equal forward purchase (to cover) - usually near the expiry date - so in a sense this is delayed demand on the future price. I don't see how it actually supports the spot price? The producer usually sells into the spot market at the same time as he lifts the forward contract. The actual mechanics may vary - to sell he has to lease the gold and repay the gold loan when the transaction is completed - although there are no doubt all sorts of roll-over arrangements. d