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

To: tyc:> who wrote (45346)	11/27/1999 11:25:00 AM
From: Enigma	Respond to of 117054

I don't know - but my view on the matter is that hedging by major producers has been a fact of life for many years - so is built into the market. There are so many other factors at work - the main one being the shortage of available gold - but so much of this is conjecture - we don't have figures on CB leasing levels - but if gold leased for the carry trade has been widely distributed as jewelry, etc. - it is not 'lost', but it won't come out of the woodwork easily unless prices reach the sky. Now if some CBs accept paper in lieu of leased gold they are effectively executing a sale of gold - but I don't think they will take this step unless it's to avert a short covering panic - even then I'm not sure - unless the standard leasing agreement contains a 'cash in lieu of gold clause'