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

To: lorne who wrote (44415)	11/1/1999 10:32:00 AM
From: IngotWeTrust	Respond to of 116759

Well, BARF!!! Obviously one set of rules for the plebecyte margin call folks, (pay up or go to jail) and a different set of rules for the "big boys" who get a big margin call. 15 counterparty banks, eh? [11 rescuing banks in the LTCM bailout] So some of them now own pieces of 2 Greenspan bailouts. Like they had some choice, right??? And the Banking index is going through the roof? Yeah, right!!! Ashanti owing 15 different banks is like giving a college freshman 15 credit cards with a combined limit of $500 million dollars and no payments due for 3 years. Who are they trying to kid here? And while they are negotiating, let's give'em another 100 million? *Now we know how the banks are going to get the "leased" gold back into their vaults." The mines are going to end up belonging to the banks themselves.* Just ask yourself one question folks: why would the banks want to own a discredited relic, physical gold 3 years out, at these low prices??? We now have two models for future short-covering: The Cambior model and now The Ashanti model Just one solace: Neither of these dudes nor the legal "engineers" behind the scene can halt the calendar: 12/31/99 is still immoveable and PRICE OF GOLD will still be higher, and I suspect shockingly so, 01/31/00 than it is now. O/49r

To: lorne who wrote (44415)	11/1/1999 10:49:00 AM
From: tyc:>	Respond to of 116759

Initial fears that Ashanti might have to close its hedge helped fuel gold's rally to $340 on October 5, as dealers anticipated enforced short-covering. reuters.com I suspect that if gold miners would only close their hedges, gold would find its true higher value ! It is the cover provided by their futures sales that enables the dealers (counter-parties) to short gold on the spot market, delivering gold leased from the central banks. Close the hedges and the dealers would have to cover; who would want to be short naked in such a situation ? The irony is that the price they get from their futures sales does not even cover all the costs of production including exploration. Some hedge !