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

To: Zardoz who wrote (47090)	1/14/2000 6:24:00 PM
From: Enigma	Respond to of 116790

Under Ken's argument when the gold is repaid to the bank the effect on the gold market would be to reduce supply and therefore drive up the price!!

To: Zardoz who wrote (47090)	1/14/2000 6:56:00 PM
From: Ken Benes	Read Replies (3) \| Respond to of 116790

You and D are really dense. A very simple principle you guys cannot grasp. When the leased gold is sold, within weeks of the lease date, it adds supply to the spot market. It is collateralized with gold in the ground which will have no impact on supply and price until it is mined. To date, gold that has been leased is continually rolled forward under a new term and not returned to the leasor. Gold sold forward may not be delivered for years to come, if ever. More than likely, it will be offset by additional paper contracts. Leased gold is not a paper contract, physical metal is moved and sold, adding to supply above and beyond the capacity of the producers to offer up to the market. This is the distinction between the hedging of gold and all other commodities. Unfortunately, this explanation will prove futile to small minds. Ken