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

To: goldsnow who wrote (44791)	11/9/1999 7:05:00 PM
From: lorne	Read Replies (1) \| Respond to of 116958

Dow Jones News Services is running an interesting story by Janet Whitman this morning which corroborates an opinion expressed here in the past that the gold carry trade is running out of steam. Even with the 30 day gold lease rate at .8% and Treasury rates running at 6% borrowers are few and far between. The reason? Bullion banks got severely singed in the recent gold run-up when lease rates spiked to the 5% range, and they don't want the exposure. As we have said here in the past the problem is not one of gold being abundantly available as it a simple lack of demand. One rumor making the rounds is that Goldman Sachs lost $2 billion in the recent gold run-up and gold carry trade losses were part of the problem. Goldman you might recall took delivery, or has the right to take delivery, on a large proportion of the COMEX gold stock reflecting the tightness in the gold market we have commented on so frequently in this daily report. Jeffrey Christian of CPM Group (no connection to Centennial Precious Metals) is quoted in the Whitman article as saying: "They (the bullion banks) got burned and traders, or rather their senior management, have a very low appetite for doing this kind of thing." Paul Walker, leasing specialist at Gold Fields Mineral Services, is quoted as saying with reference to the gold leasing situation: "Further out there's a certain nervousness about what the future holds, especially at the turn of the year. Things could still blow. There's loads of paper out there, but the gold backing it up ( isn't ) there." The article goes on to raise the spectre of Y2K gold demand as a source of problems for the gold carry trade. The central banks, the primary gold lenders, are in the process of recalling their gold to stay liquid in the event of a liquidity squeeze associated with the date changeover. The article concludes: "Other market participants believe the worst is over. What most agree on is that the heyday in the gold leasing market is over." Jeffrey Christian get's the final word and offers this interesting thesis: "It's a changed scenario in which the bullion banks are operating now. I don't know if anybody is going to go back to the cowboy trades that they were making six to eight months ago. Bullion banks were making outright speculative positions. I think we've seen the end of that." That's it for today, my fellow goldmeisters. See you back here tomorrow. usagold.com

To: goldsnow who wrote (44791)	11/9/1999 9:23:00 PM
From: Braincramp	Respond to of 116958

Global Petroleum inventories. Makes a person wonder what the price of black gold would be if y2k disrupted the flow. Jan 10, West Texas crude at $350 bbl, just a thought.

To: goldsnow who wrote (44791)	11/9/1999 11:36:00 PM
From: PaulM	Respond to of 116958

Here are Highlights of the Actual IEA Report iea.org (Click "Current Months Highlights") The report confirms what we had been speculating for some time: the reason that the "oil glut" of 1998 turned into the "shortage" of 1999 so quickly was that there was no glut in the first place. Again, sacrificing the real economy to financial markets, the U.S. artificially priced oil using the paper markets to promote the bubble. Along the same lines, check out how many times Clinton sold from the emergency-only Strategic Petroleum Reserve for thr sake of Wall Street. The result: few domestic rigs in operation, a smaller emergecny stockpile and we have never been more vulnerable to an OPEC cutback.