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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (7566)	9/1/1999 6:33:00 AM
From: sea_urchin	Read Replies (2) \| Respond to of 81221

Claude: "The gold borrowed and sold for the purpose of hedging will be reimburse from future production." Sure. In which event the zero sum situation prevails and the previously sold gold is unavailable as future production has to make good the loan. Or else the mine has to buy on the market, thereby pushing up price of gold. However, what happens if the mine cannot re-supply for whatever reason, as in the case of LTCM? Or, prefers not to. This is the big argument of the conspiracy boys. Now, the mine pays the bank in cash, presumably at current market price, for the gold which it bought some time previously and sold on the market. Thus the same gold gets to be sold twice --- (1) by the mine and (2) by the bank! And the short/forward seller gets off the hook --- much to the chagrin of the conspiracy boys. Ten to fourteen thousand tonnes is one Helluva lot of gold either to be kept off the market or to be found somewhere --- over three years world supply.