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

To: lorne who wrote (70461)	5/26/2001 9:17:34 PM
From: lorne	Respond to of 116895

Don't Let Gold Doldrums Fool You! Posted Friday, May 25, 2001 at 08:31 AM EST By Larry Edelson Safe Money Report According to latest stats, the amount of gold sold short on the Commodities Exchange in New York remains near a record high of nearly 11 million ounces. It means that more traders and mining companies have committed to gold sales (without owning the metal) than ever before. Problem: When they go to buy the metal needed to deliver on these commitments, it could fuel a move up in gold that perhaps could take back a full month's losses in a single day. The major central banks are in a similar bind. Nearly every one has loaned out gold from their reserves (exactly how much is impossible to figure, but estimates put it at between 150 million to 200 million ounces). Plus, they've sold nearly 70 tonnes of the yellow metal just since November. With central bank supplies declining, and most central banks' gold already loaned out, I believe the price pressure from the central banks will begin to abate. That means the slightest rally in gold could turn into a monster move. Combine these two forces with the fact that demand is holding near record highs, and it's easy to see how gold could turn the corner any minute and blast higher. So I repeat: Don't let gold's doldrums fool you! tfc.com