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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (31157)	10/25/2000 12:52:00 PM
From: Perspective	Read Replies (1) \| Respond to of 436258

Ah, that's just $100B, right? Mice nuts compared to margin loans outstanding... BC

To: pater tenebrarum who wrote (31157)	10/25/2000 1:02:03 PM
From: oldirtybastard	Read Replies (1) \| Respond to of 436258

How hard would it be to cause a retail initiated squeeze in gold? That idiot Irwin Jacobs tried it with CNC by taking out an ad in the WSJ or NYT I forget which, and it didn't work because CNC is a POS, gold on the other hand? The more the market drops and the more J6P gets nervous, the more he will want to search for a way out and would be desperate enough to buy gold if sufficiently scared. Of course the market has to DROP, none of this mickey mouse shit. Of course this would normally not be neccessary as gold should be going up right now in light of all that is happening. In fact, a good trader would probably be short gold now as it is not behaving the way it should meaning that if the war and currency crises turn away from danger mode, gold would resume an even steeper drop. puzzling times indeed.

To: pater tenebrarum who wrote (31157)	10/25/2000 1:47:41 PM
From: Sunny Jim	Read Replies (1) \| Respond to of 436258

<<you got that right. an estimated 10-14,000 tons is shorted in this manner>> how would one find the short interest in gold? We have ready access to short interest for the major exchanges, but I have never seen short interest for gold published. Who makes these estimates?

To: pater tenebrarum who wrote (31157)	10/26/2000 12:55:02 AM
From: Perspective	Read Replies (2) \| Respond to of 436258

You didn't quite answer my questions - who is doing it, and where may I dig to find the evidence? And I didn't understand your response regarding the collateral. <Is there evidence to support this? Is it true that the lease rate on gold is really just 1% per year? Is there a way to gauge how much gold remains that can be shorted in this fashion? What kind of collateral are the borrowers putting up?> you got that right. an estimated 10-14,000 tons is shorted in this manner...and there is NO WAY these loans can ever be paid back. which makes it all the more curious that loans which are practically GUARANTEED to default have a 1% interest rate. AND the collateral (gold) is being SOLD the moment it is borrowed! it's a huge carry trade, and it almost went bust last year on the Wash. agreement...gold soared by $84 in one week on the mere threat of CB supply diminishing somewhat. ever since, the bullion banks have piled paper short upon paper short to keep the price down and have talked all sorts of obscure exotic CB's into either selling or leasing their gold to keep the game going (Chile, Kuwait, Jordan, Uruguay, Bangladesh...). once they run out of these exotic suppliers i'd expect the paper gold market to seize up. in all probability the big players will then be bailed out, but the CB's will never get their gold back. that's gone forever.