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

To: tyc:> who wrote (44462)	11/1/1999 10:53:00 PM
From: lorne	Respond to of 116762

Official says Russia to start "ample" gold exports despite tax Moscow--Nov 1--Russia is expected to resume gold exports shortly, despite the recent extension to the 5% duty on gold exports, according to Viktor Tarakanovsky, head of the Union of Russian Gold Prospectors. He said that exports would be "ample," but to ld Bridge News that he expected total export levels this year to be significantly lower than in 1998. (Story .16210) Canada's Cambior reduces gold hedging position New York--Oct 29--Canada's Cambior Inc. has reduced its gold hedging position by 1.3 million ounces. --Georg Szalai, Bridge News (Story .21053) crbindex.com

To: tyc:> who wrote (44462)	11/2/1999 7:05:00 AM
From: long-gone	Respond to of 116762

not an "economist", but always glad to give HO. <<Just been thinking.... When the bullion bank short sells the gold it places the proceeds on deposit to earn interest until the forward sale is due for completion.>> Often the "bullion banks" are not banks in the most strict definition, One should note the names of the biggest bullion bankers, GS, Deutch Bank, USB,... <<Does this not significantly increase the cash deposits of the bank; is there not another multiplier effect here that permits the bank (or the banking system) to increase its lending manyfold on the strength of that cash ? If so that cash is worth far more to the bank (banking system) than the simple interest calculation that determines the forward sales price.>> It appears here you are making a connection between the bullion banks and the Central Banks which should not exist ,in theory. I believe it is designed to drive the money (not simply the money represented by their gold, but all money) out of safety and into risk. Where there is risk ther can be loss. When there is a great loss to one, there can be a great profit to another. <<I wonder if this is why the central banks are prepared to lease their gold; it enhances the liquidity of the banking system by adding cash to it.>> Few wish to address that there may well be personal profits being gained by some in charge of the Central Banks by holding short positions in gold themselves.