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

To: D. Bryan who wrote (55)	12/8/1999 5:42:00 PM
From: zebity	Respond to of 99

Gold prices manipulation and bullion dealers... This is a subject of much speculation and you will find many references to this on the www.gold-eagle.com web site. There is a general agreement that there are a large number of bullion dealers/hedge funds (Goldman Sach being the biggest) as hugely short physical metal. To the point where they are getting support from government bodies to avoid major ramifications on the finanical markets in the even of a rapid rise in the gold price (a'la LTCM with the Yen carry market which resulted in a FED orchastrated rescue). There is an group "Gold Anti-Trust Action" (GATA) which is trying to uncover the truth in all this. One of the problems with the gold market is that while you can see the current price www.kitco.com there is no place where actual phyical volumes of metal traded is published. All interesting stuff, but unless you have some very good contacts within the gold market, it is hard to get to any definitive answers. Certainly this article indicates that the bullion dealers are expecting a large rise in the gold price (ie above 370) that way they get to make easy money via expiration of puts (this has happened already) and then getting any premium above $370 should the price of gold rally strongly. Something that must be expected or why would they have purchsed the call options. This will no doubt help them recover some of the exposure that their short selling positions have opened. A lot of this derivative exposure has been brought about by the gold companies themselves and their continued forward selling does little to assist the long term prospects of gold miners. The lack of hedging and exposure was one of the reasons that i purchased Newmont shares a while back... Cheers. Zebity