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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (68313)	9/28/1999 9:37:00 AM
From: Henry Volquardsen	Read Replies (2) \| Respond to of 132070

Richard, with the banks or other financial intermediaries it depends on who their counterparty is. The CBs are by and large very credit sensitive so almost all of their leases are with banks. It is not common for CBs to deal with a producer or a hedge fund. They are looking for at least AA and preferably AAA. The banks are just serving their traditional role as intermediary. For the most part the banks are dealing with producers. On the second one, if the bank leased the gold onward to a hedge fund then it is most likely converted to a short position. The question remains how much this short position is. My own opinion is that the short is not as large as people have feared, in other words it is not massive. Any way the market is certainly following through today so it does look like somebody is short to some degree. The key to watch now is what the producers do. As I posted last night a number are looking at this rally for an opportunity to hedge some production. Henry