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

To: baystock who wrote (63888)	2/16/2001 11:30:51 PM
From: russwinter	Respond to of 116764

It is arguably a virtual corner of the Comex open interest of 14.4 million oz. Comex futures are a major, if not the most significant factor in the (current) pricing of the gold market. Annual production rates from mines, or total gold above ground in the world has nothing to do with daily price settings any more than the total number of shares of a stock does. As in most markets, prices are set at the margin by relatively few trades involving very small amounts of a commodity (or stock, real estate, you name it). The Comex (the tail) wags the dog in gold pricing. That's the point to be made here. There is precedent too: TOCOM rogue trader copper fiasco a few years back.