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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (82311)	12/21/2000 12:29:29 PM
From: Phos	Respond to of 95453

I think there is a problem with gold rising to any significant degree (your 'slow ramp'). And that is the huge short position of the major banks: Morgan, Chase and Goldman-Sachs. I don't think gold can rise slowly with their position hanging over the market. They either keep it down or it goes ballistic at some point when they realize that they cannot suppress it any more. I could be wrong but I cannot see any other scenario. They cannot cover their positions because there is not enough physical available to do so. The only alternative would be a major change in the 'rules' allowing them to cover in some other way. And if they cover with cash, they would still need to restrain prices to keep losses under control.