To: pater tenebrarum who wrote (111305 ) 7/5/2001 11:17:19 PM From: craig crawford Respond to of 436258 >> the difference is gold LENDING, which increases physical supplies, as opposed to the contractual zero sum swaps of risk that are common in other commodity markets. << like i mentioned in my previous post, central banks are actually physically delivering the gold to the borrowers? if not, how is this any different than say, short selling, which artificially creates supply when you borrow shares and sell them into the market. most people don't consider short selling a conspiracy. >> i'm confident that a revival in investment demand is all it will take to inspire gold, regardless of the interests of the owners of mismatched lending books and participants in the carry trade. << i'm confident that a revival in investment demand is a key to gold trading higher regardless of any hedging or leasing. so why focus on leasing and hedging like so many people do? why don't most gold bugs stick to worrying about supply and demand? >> i won't rule out market manipulation though - there have been well-publicized instances of manipulation in wheat, copper and silver (i'm sure there are more examples, but that's what i recall off the cuff), involving prominent investors and firms. << i'd like any info you have on wheat manipulation. as for silver, i'm assuming you are referring to the hunt brothers. i can't say i'm intimately familiar with the details of the story, but many would argue that they weren't trying to manipulate the market, they just saw a favorable set of conditions and were attempting to capitalize on it as much as they could. furthermore, those 3 examples aren't good analogies because they are much smaller markets than gold. some markets are small enough to easily manipulate, but gold is quite a large and global market. not so easy to manipulate.