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

To: russet who wrote (39296)	8/19/1999 11:09:00 PM
From: Bob Dobbs	Respond to of 116998

russett: Your idea is correct, as it must be the CB leases that make up for the demand/production deficit. There just aren't players big enough to do that 'cept the CBs. The CBs may very well be rolling over these leases - we don't know. Some facts do stand out however - there is about 35,000 tons CBs hold. A good chunk of that (3,000 - 15,000 tons) is already gone from their coffers, leased out. And it's only certain CBs that have been doing that (Switz, England, Portugal come to mind). The rest (France, US, Germany, Italy) haven't and don't intend to, to my knowledge. These four form the bulk of the holdings, too - something like 20,000 tons. If this analysis is correct then there really ain't much left to loan out! I have a feeling that the Bank of England never actually passed the physical in that auction - it was only to cover their leases with cash instead of gold. The inside bullion market makers who successfully bid for it basically just closed out their shorts. That's probably what happened and why it was so secretive. That also explains the preannouncement, since the BOE couldn't care less what the price of gold they're already leased out is. Bob