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

To: Rarebird who wrote (39255)	8/19/1999 7:38:00 AM
From: Alan Whirlwind	Read Replies (1) \| Respond to of 116857

<<For those investors, who reportedly are also among the heaviest gold borrowers, a continued increase in lease rates could portend a sudden and damaging short-covering rally in the metal. Such a scramble would be of huge benefit to the price of gold, although it would be unlikely to move other markets significantly, said Frank Veneroso, a gold expert at Veneroso Associates and author of the Gold Book Annual. "I don't think [the gold carry trade] is a big deal," he said. "I think that sometime down the road, it will get unwound. But I've never believed it's been large enough to create any systemic risk.">> For Veneroso to say that the carry trade is no big deal and likely won't help gold shows just how bad things really are for metals.

To: Rarebird who wrote (39255)	8/19/1999 7:53:00 AM
From: long-gone	Read Replies (1) \| Respond to of 116857

<<The gold carry trades involve borrowing gold from banks at prevailing low interest rates, selling or using it, then using the proceeds to buy higher-yielding assets such as Treasurys. The low borrowing rates, combined with weak gold prices, make repaying the loans inexpensive, even for manufacturers who must replace borrowed metal they have turned into finished goods. >> You notice the (not very) subtle spin? Those of us who buy gold and gold mining companies(many of us even with-out margin, and with the long term in sight) are reported to be "speculators", while those that are in the cary trade, that produce no gold, that only borrow, and sell(& I'm sure they operate on margin), are(under the current warped Wall Street thinking) the "investors". We that have invested in gold mining are owners of the means of production. What the FU#@ is wrong with this picture?!? We, "the gold bugs", are written of ,in the press, as demented, viewers of an apocalyptical future, or even insane. I have always seen not the evil in the upward pressure on gold prices, rather, only an expanding world economy, where more people will live near the corrosive sea air and need the superior electronic qualities of gold, where more richer people will be able to afford more gold, not less. Many of us have been correct in calling the bottoming and turn-around of the gold miners to use this wonderful modern technology and extract gold from the earth at an ever lower and profitable rate. Yet, because some see gold as "EVIL", and the market has been manipulated, we are viewed not as smart investors in the "greatest turnaround in all of history", we are displayed as idiots? Sure, there have been some mining companies which have committed some bad ecological acts. In and larger view, these are behind us. Are the investors in MSFT seen as evil or crazy? PS Harry Bingham is on Bloomberg TV right now!