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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Alan Whirlwind who wrote (16510)	12/13/2002 4:28:52 AM
From: sea_urchin	Respond to of 81137

Al >on many a rise goldbugs heralded the upward sweep of lease rates as propitious Yes, sure, because the gold has to be repurchased at some time. Of course, when the interest rates fell to peanuts the forward rate on borrowing or lending gold fell to nearly the spot rate so the gold lenders didn't do any more business because it wasn't worth while to borrow gold to reinvest it. Secondly, when the miners, who had sold forward, started buying in their hedges and forward sales all available gold was swept up. Clearly, this repurchasing signaled the end of the "short" game. Meanwhile, the "smarties" all thought it was like taking candy from kids to sell short when POG reached $323. Now, all short positions sold when POG was below $334 must be paid for. In fact, if they can't buy the gold they will have to pay in blood. Today I see the gold price is flying which can't bode well for anyone short. quotes.ino.com >Somebody is finally afraid to lease out more. Sure. As I said above, the game has changed. Hold on to your seat and don't panic. You are about to have a very big experience.