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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sq39 who wrote (20383)	9/28/2001 5:02:01 PM
From: Square_Dealings	Read Replies (1) \| Respond to of 52237

Since we abandoned the gold standard, gold has been used as a source of funds for investing in the stock market and bonds. Bullion banks lease the gold from the central banks. Then the bullion bank sells the borrowed gold and invests in other things. There is also some speculation that the IMF has used gold loans to fund emerging markets in crisis, like Argentina. So gold has been used as collateral for significant loans over the last 10 years. When the value of the other investments decreases or when credit risk gets high, then the value of gold goes up. If the banks have overborrowed on gold then the price will go up as the loans are called in. Gold mines are depleting in output and it is estimated that within 5-10 years there may not be any more gold. So it gets harder to pay back the borrowed gold. Also gold has unique physical properties. There is no substitute for many electrical components and semiconductor processes. People have been brainwashed into thinking that gold has no value because that's the way the bullion banks want it, capped. M.