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

To: Zeev Hed who wrote (63917)	2/17/2001 7:02:38 PM
From: Alex	Read Replies (1) \| Respond to of 116763

<<The term "lease" is a misnomer, confusing the basic difference between banking on the one hand and bailments and leases on the other. A bank deposit of currency or gold creates a liability for repayment in currency or gold, but the money actually deposited passes to the bank for use in its business as it sees fit. The depositor necessarily becomes a creditor of the bank. A bailment creates an obligation to return the item bailed and gives no right to use it. A lease creates an obligation to surrender the item leased at the end of the lease term, during which period the lessor has the right to use but not to convert or sell the leased property. A lessor does not become a creditor of the lessee except as he may agree to accept rent in arrears. A gold loan by a central bank is a deposit in a bullion bank, not a lease in the ordinary sense of that word. The gold "leased" is effectively put out for immediate sale into the physical market, where ultimately the gold for repayment will have to be purchased. The basic point: gold leasing is not leasing at all; it is banking. The great irony of gold banking as practiced today is that the central banks are the principal depositors. Like private depositors before the era of central banking, they must protect themselves.>> gold-eagle.com

To: Zeev Hed who wrote (63917)	2/17/2001 7:57:01 PM
From: long-gone	Read Replies (1) \| Respond to of 116763

<<Enjoy the coming short term rally.>> I feel so sorry for you or the many that don't understand momentum and are willing to accept the trends of the last 4-6 years as the only possible trend..

To: Zeev Hed who wrote (63917)	2/18/2001 12:03:27 AM
From: sea_urchin	Read Replies (1) \| Respond to of 116763

Hello Zeev. Long time no speak. I posted your picture yesterday --- and now you appear! I trust you are well. Re: "I think that GATA is right in one respect, there is a conspiracy to cap the price of gold, and various instruments are used by CB to that effect" Do you not consider, therefore, that their court case will reveal the evidence of that and, in which event, the conspiracy will have to stop? Re "Enjoy the coming short term rally." The first time I have heard you mention that POG might rise. I guess after mixing with so many goldbugs for so long, some gold dust has rubbed off on you!

To: Zeev Hed who wrote (63917)	2/18/2001 11:54:59 AM
From: russwinter	Read Replies (1) \| Respond to of 116763

<CB's will get back to Washington and change the Agreement> to cap a rally. Zeev, I would suggest the complete opposite CB reaction, a buying panic. In part this is because as much as a third of the world monetary reserve has already been leased out at absurd interest rates (currently 1.17% on six months)to bullion dealers (banks). Further there is evidence of a schism among different CB's. The larger non-English speaking CB's (including present nominal holders of gold reserves like Japan and China) are more than just a little shaky in their belief and confidence in the flood of dollar based paper liabilities afloat in the world. Their problems are too many dollars and too much liability based paper, not too much gold. If anything, they should want to rebook leased gold (listed as gold paper RECEIVABLES) as actual physical gold. There is a huge difference between the two. Leased gold is someone else's liability, and the meaning of that is and will become all too evident. Finally a general point about CB gold policy in the last decade. They are the greatest fools of the financial mania and now bursting bubble. They have systematically divested their gold through outright sales and lending in order to increase their holdings of dollars and other paper currencies. Nouveau central bankers have parroted the values and beliefs of the now failing paper asset bull market. Their supposed prescience is one of the unfathomable myths of our times (right up there with the Tooth Fairy, Santa Claus, Goldilocks, and Easy Allan Greenspan aka The Wizard of Oz). Rather than capping a rally, look for some (if not many) of them to change their minds and turn into panic buyers (or effectively call their gold loans) when paper currencies fall out of bed.