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

To: sea_urchin who wrote (7626)	9/4/1999 8:03:00 AM
From: Enigma	Read Replies (1) \| Respond to of 81254

When the producer/hedger sells it is one sale in the forward market - not the spot. At that point there is a lease agreement with a bank. At some point before the delivery date the forward sale is covered by the producer who buys forward gold of the same maturity. So we have in effect a cancellation of the first forward sale. I don't know what the hedger does - presumably he also buys the forward contract, or rolls it over. If the producer doesn't have the gold to repay the loan (and people have pointed out here that the main producers are well covered by reserves)he would have to repay the bank at MV. The bank would then have to report this as a sale or buy back gold in the market to replenish its reserves. So, since the first forward sale has been cancelled the gold has only been sold once?

To: sea_urchin who wrote (7626)	9/4/1999 4:55:00 PM
From: .Trev	Read Replies (1) \| Respond to of 81254

Jeez Searle if you don't understand it by now what hope is there for the rest of us?????? And I was thinking of buying an ounce to upset the balance too. I still think if we could ever get at the truth of the Long Term thing from last year, we might understand how the Hedging People manage to fool us. I recall you don't agree with my description of it as the biggest scam ever, But I'm still not satisfied and have nightmares about it going on in depth all the time. Wonder where that particular bunch of Sharpies moved on to????

To: sea_urchin who wrote (7626)	9/4/1999 5:05:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 81254

Searle: If you are right about the CBs accepting cash for their gold loans, the game is even more rigged in favor of the shorts than I had thought. What this means is that if gold goes up the CBs will let the shorts off the hook very cheaply. But if gold goes down then the CBs will accept gold. Does this not involve GIVING national assets away to the short speculators via a rigged game in which they cannot lose? Any CB official who would countenance such a scheme probsbly is taking big payoffs from the bullion banks.