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

To: russet who wrote (39911)	9/2/1999 6:33:00 AM
From: d:oug	Respond to of 116995

russett, my approach can accurately be described as odd, stupid, wild swings, nonsense and with a big slice of discontinuity. But there is a glue that I use in this madness of mine, and I obtain it from that which is my focus. A difficult problem in physics may need the solution to five seperate parts, where a difficult problem in a Computer Science related user software program may have five thousand seperate parts. The nature of the physical sciences is set rigid thru the properties of energy and nonliving matter, where in the case of a computer program it does whatever is coded, and these events of the gold markets also seems to be determined by whatever those in charge decide to do. The difficult physics problem may be described in five steps that only a few of the type of an Albert Einstein can understand, and all the rest of us can work at its solution ad infinitum without success. But that computer software problem of a difficult type is composed of five thousand lines of code, each as simple as a highschool algebra example, and differ than the physic problem in that almost all computer science graduates are able to solve that problem, those very good in an hour and those at the other side will need a day or a week, but they will solve the problem as each step can be understood and knowned what it does or to do. Now I see many examinations of events and many reasons given to explain them, but it like a computer program that each step is knowned and can be explained for a reason. But yet some say this has happened or is happening, and other say something else took place. Seems noone really knows that which is knowable by most all. Conclusion to me is that smoke and mirrors and lies and misinformation abound. So I say to you that my position is that all is not ok and correct because we cannot prove either side as accurate and true. You say your examination is more real than GATA's, and I say to you that you base it upon information supplied that is controlled and and what you obtain is false. But you say it is real and true. So ok, where did this article get its info from ? A short version of an article in Canada's National Post. nationalpost.com. Monday, August 30, 1999, Gold less tarnished than it seems. Patrick Bloomfield, National Post ... central banks hold the equivalent of 12 years of global gold output and some are willing sellers ... But how much of that gold is readily available for delivery free of paper claims against it ? There are few published figures, no reserve requirement, no supervision or regulation and no accountability. It's the private domain of bullion dealers, central banks, mining companies. Its creditworthiness ... educated guess ... is that it is bankrupt. ... it has become a trap from which few short sellers will escape, because "paper claims in the form of derivatives far exceed the physical metal on which they are based. ... selling pressure from gold borrowed or leased from central banks, and resold for the accounts of mining companies or financial institutions. Central bankers apparently report leased gold as "gold receivable" and lump it together with gold on hand. In his view, much of this borrowed gold has already been melted down and sold into the physical markets, and no longer exists in physical and deliverable form ... ... physical gold borrowed from the central banks has been sold over and over again in multiple transactions. ... of a 6,000 ton to 10,000 ton physical short interest. As at year-end 1998, 3,600 tons had been sold short by mining companies against future production, possibly 1,500 to 2,000 tons would be payables of jewellery fabricators, and the 1,000-ton to 3,000-ton balance speaks for speculative positions held by commodity funds, hedge funds and financial institutions. The mining companies' role speaks for a further paradox. The more the price falls, the lower the value of producers' reserves (against which they have sold forward) and the lesser the creditworthiness of their forward sales. ... short position that represents US $40-billion to US $80-billion of capital at risk. A short covering rally of $50 to $100 an ounce would cost US $8-billion to US $16-billion. Come any significant increase in financial market tensions, which have already sent gold lease rates upward (and thus eroded gold's role as a source of cheap finance), a further sharp rise in lease rates could wipe out the profitable spread that has helped propel gold prices lower. "National Post Online is a production of Southam Inc., Canada's largest publisher of daily newspapers."