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

To: Alex who wrote (60528)	11/4/2000 2:12:55 PM
From: Ken Benes	Read Replies (1) \| Respond to of 116779

A key point that was overlooked in your notes, the cb's hold 33000 ounces of gold, but how much is in the vaults. If the total amount leased is 9 to 12 thousand tonnes, the 33000 tonnes is reduced to about 20,000 tonnes. At some point in time these discrepancies will have to be reconciled, however, I still believe it is going to take a panic situation for this scenario to unfold. Trying to explain the concept in your notes to an individual whose mental acuity is limited to markets go up and markets go down, markets are in balance because for every ounce borrowed and ounce has to be bought to cover the debt is fruitless. It is better to use your energies to keep posting your notes to the board. Ken

To: Alex who wrote (60528)	11/4/2000 2:26:13 PM
From: Enigma	Read Replies (1) \| Respond to of 116779

It's there when the company produces it - they're selling against future production - if they don't have it or have enough they get into trouble - Cambior, Ashanti - but there are always exceptions or badly managed companies. The point I'm making is that you can't just focus on the initial forward sale.

To: Alex who wrote (60528)	11/4/2000 3:39:11 PM
From: marek_wojna	Respond to of 116779

<most of this gold has been converted into jewelry so it can't be retrieved.> I'm positive wifes and girlfriends would be just happy to convert their jewelry into something more profitable like few shares certificates of JDSU or RIMM. Just explain to them - " you see honey, those central bankers know what they doing"

To: Alex who wrote (60528)	11/4/2000 5:03:11 PM
From: Zardoz	Read Replies (3) \| Respond to of 116779

The problem becomes apparent when a financial or geo-political crisis erupts as to where the gold exists in the vaults of central banks or in the form of jewelry. This problem of paper gold and physical gold could become the central banker's worst nightmare. But then again, maybe not. Maybe a geo-political crisis is exactly what is needed for gold to hit an all time low? Consider this:" A bumblebee is supposed to be so un-aerodynamic that the flight of such bee seems impossible; yet they fly. The over whelming opinion of the short gold seem to suggest the same impossible hedge lasting, yet it does. Maybe the analyst whom suggest the short positions:are wrong; as the scientist suggesting bee's can't fly?" Veneroso Associates neglect many things when talking about this presumed gold shortage and leasing. Of which the most obvious is:"What is the leased-shorted gold invested in?" To fully understand a hedge, is to understand the total equations. Maybe a hedger-producer is long currency options? Maybe they are 4 times long with out of the money future options. Veneroso continues to print the picture in black & white, where colour is what is important. Hutch Maybe Veneroso and Associates are just wrong.