Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Zardoz who wrote (1969)	1/17/2000 3:02:00 PM
From: nickel61	Read Replies (1) \| Respond to of 3558

I assume you know that the transaction figures you quoted are for paper transactions and therefore could not be used to assemble the 525 tonnes of physical gold that they would need to be delivered to satisfy the contracts. Or maybe you do you not know that and that is why you are showing the table? There is no way they could buy that much physical gold in the current market without a massive spike in the price. To say nothing of the various other players who would run ahead and make their purchase of every ounce painful. Your last comment makes no sense. Without the gold mines they would have no way to deliver the future production.

To: Zardoz who wrote (1969)	1/17/2000 7:26:00 PM
From: nickel61	Read Replies (1) \| Respond to of 3558

Lets see roughly 37 million ounces of gold trades per day,which is 1,151 tonnes of gold. There is a total of gold in the world of 128,000 tonnes give or take. 30,000 tonnes of which are in one Central Bank vault or another, an additional 35,000 tonnes of which are on the necks of the Indian population or in one of the Indian private hoards, 25,000 tonnes are estimated to be on a physical object such as King Tut's Mummy ,the glass of numerous skyscrapers, collectibles ,arifacts, computer and cellular phone connections , dental uses ,armour,jewlery,royal treasure,fireplace fixtures,plumbing supplies, numismatic coins and various pieces of gold artwork etc. That leaves roughly (128,000 - 85,000)= 43,000tonnes in total of physical gold that could be traded in a physical form at the LBMA . You are showing they trade 1,150 tonnes of gold every day that is 25,000 tonnes per month. Or 58% of the total available gold in the world every month. Or another way of saying that would be the total available gold in the world is traded across the LBMA every year SEVEN TIMES . Put another way the total world wide production in 1998 was 2550 tonnes. According to the LBMA numbers they trade the entire world supply of gold production every two days. Doesn't anything strike you as odd here? These trades they report are the gold deriveitives that have become a much larger market than the physical gold itself. They are the paper promises to deliver gold made by thousands of counter parties 99% of which are never settled in physical gold but are settled in money at the spot price. they are paper transactions. The shear volume of which is evidence that the physical market is way out of balance.A direct legacy of hedging.