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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Howarth who wrote (1465)	11/24/1999 5:42:00 PM
From: nickel61	Respond to of 3558

The exciting thing right now is the Central Banks have been leasing more or their gold than anyone ever expected or understood and the market has absorbed it, at a lower price granted, but it has already been sold.Now the question is how will the "leased" gold actually be replaced when the contracts mature. The gold carry trade that has been so popular the last five years meant that much of the stored CB gold has already been sold in the market place and used in fabrication of one kind or another.Bookmarked as it were in the assets of the Central Banks by a paper obligation to return a stated amount of gold in the future with interest.The only problem of course is that greed being what it is and the gold Carry Trade being oh so profitable the Masters of the Universe perhaps got a little carried away and sold more gold than they can return. We are now apparently in the twilight zone area were no one is quite sure how much gold is already out on"lease" and how much is ever going to be returned and at what price the remaining physical gold will be available to settle the claims. A very exciting situation for goldbugs and a tad trying for gold borrowers who sold short. That is the $64.00 question that everyone is trying to answer as we come up on the third Bank of England auction. If the physical gold market is as tight as it seems than the auction might well be even more over-subsribed than the last auction was last September(eight times including at least one major gold producer as buyer). If so gold might finally be able to sustain a major up move for the first time in many years.Cheers