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

To: Enigma who wrote (55667)	7/3/2000 11:20:25 PM
From: LLCF	Respond to of 116972

< Which I take to mean that if 1000 tons a year are being leased the level will not go above that amount. > The bullion banks {investment bankers like goldman} are also long TONS of OTC options from he producers... they buy calls and short the gold thru the carry trade creating a situation which they get fantastic 'short rates'. I have no idea what the "net" result is either, but if you look at all the stuff sold by the producers and compare it to the 'carry trade' you come closer to reality IMO. According to many on this thread the 'foreward' sales by producers is also HUGE, so I don't know why they then get all in a tizzy about the size of the carry trade. We know for a fact that Goldman owns TONS of calls from Ashanti alone, as they orchestrated that deal. If someone had a total notional amount of gold sold foreward by the producers and compared it to the amount borrowed and sold, we'd be as close to the truth as we could get IMO. Anyone have any numbers? DAK

To: Enigma who wrote (55667)	7/5/2000 6:00:34 AM
From: re3	Read Replies (2) \| Respond to of 116972

enigma, i queried somebody who writes for one of the other boards, and this was the reply on the gold short position i received : (pls comment on this if you want) --- Frank Veneroso has done a very detailed analysis and figures that it is about 10,000 tonnes. Since Frank probably has a better handle on the situation than anyone else in the world and he has no reason to fudge any figures, I am prepared to accept his analysis at face value. The 10,000 tonnes includes about 4,000 tonnes of gold borrowed as part of forward selling by mining companies, which is not really a short position since they have the gold to pay back the loan. Therefore the real short position is most likely around 6,000 tonnes. ---