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

To: Zardoz who wrote (56770)	7/28/2000 7:39:05 AM
From: d:oug	Respond to of 116927

Hutch, You is also skilled in science and engineering, so you know the validity of the following statement. "... it's almost perpetual motion..." Which is contained in this article you noted in you post. Any analogies you care to make about the one thing that prevents this type of motion on planet earth, being that of friction, and a gata like similiar effect to this carry trade ? Once something goes into motion, as we know, it will continue unless an external force is introduced. To me I still speculate that not for Bill Murphy and GATA that the price of gold today would be under $200 or $150, but to use that Le Metropole Cafe saying, eventually "it will end badly" with gata sooner without gata much later. doug Carryings-on aplenty in gold carry trade Street Talk, By Andrew Main The gold carry trade is flourishing again..... This is the wheeze by which traders and gold producers go short gold, rolling their positions over when they expire, and cover by borrowing gold cheaply from central banks and private holders..... Why is the trade booming? Because you can now borrow gold at 1.15 per cent per year ... and invest the sale proceeds of the gold you never owned at better than 6 per cent in Tbonds. As long as the gold price holds flat to down it's almost perpetual motion.... And that's the WGC's problem as it means many producers have effectively double sold, thus almost guaranteeing that the price won't rise.....