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

To: Ken Benes who wrote (38250)	8/3/1999 3:57:00 PM
From: Enigma	Respond to of 116764

You are confusing apples with oranges - the producers may decide to decrease production - or some of them may do so - but there's a relationship between what they produce and sell into the spot market and what they have already sold forward and need to cover. They could I guess buy back enough forward contracts so they reduce their commitment to produce. Now, Hutch believes that forward sales actually increase demand in the spot market - which is contrary to your position - but I'm not clear what he means by this and am waiting to see. It is my view that the forward selling issue is a red herring because it ignores the continuous closing of forward sales contracts - the one more or less offsetting the other - the important matter is the amount of actual gold hitting the market. Gold carry trade is another issue.