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To: ild who wrote (145035)	1/21/2002 2:20:02 PM
From: Tom Smith	Respond to of 436258

question : paper gold or physical and if physical, who sold it?

To: ild who wrote (145035)	1/21/2002 2:59:20 PM
From: BSGrinder	Read Replies (1) \| Respond to of 436258

Re Anglo and Normandy buying gold: They only said that they closed out their hedges for that amount, and Anglo pointedly avoided saying how they did it, as usual. They almost certainly did not buy any gold on the physical market. They probably delivered into some of their expiring contracts, and they also may well have "closed" some positions by buying calls on gold futures to offset their risk on existing forward sales. The amazing thing is, in the recent environment of record low gold prices, who would sell huge amounts of calls on the price of gold to a gold mining company? Who could possibly assume such a risk, unless they had immensely deep pockets and were either assured that there was in reality no risk, or that in the event of losses, they would be made good? It is questions like that that make the ESF/Fed/Central Banks conspiracy so compelling. And it is all this action in paper gold that has made the physical market so moribund. We need some developing counter-party failure, a al Enron, to get everyone scrambling for the physical metal. FWIW, /BSG