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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Sunny Jim who wrote (4746)	12/1/2001 11:17:25 PM
From: gold$10k	Respond to of 36161

Hi Stock Profit, Someone else probably knows more about this than I do, but I understand it this way. The COTs show the positions of the commercials and speculators with respect to futures contracts. The commercials are generally considered the smart money. OTOH, the huge short position that GATA talks about (based on research by Frank Veneroso) is physical gold which has been leased from bullion banks and sold on the spot gold market. While lease rates are low, the POG is falling, and the stock/bond market is doing well, it is a great carry trade to lease the gold, sell it, and use the proceeds to buy T-bonds or stocks. As the pendulum swings the other way, thousands of tons of gold will have to be re-bought and returned to the bullion banks. Can you say "short squeeze"? vt