Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Fidelity Select Funds -- Ignore unavailable to you. Want to Upgrade?

To: gregor who wrote (156)	2/9/2003 2:15:19 PM
From: Julius Wong	Read Replies (1) \| Respond to of 5019

Hello Gregor: >> no evidence that the buying public is participating in this gold rally << Agreed. >> the exchange rates in currencies usually lessen my gains and lessen my losses << Agreed. >> my question is what is to be gained by going long the metal and short the gold stocks << Nothing to be gained if amateurs long gold and short gold stocks. The profitable play is to long gold and short only the hedging companies. The hedgers sold gold (unmined gold, still underground) forward for $300 when the price was $270. Now gold is $370 but they must deliver gold at $300, or buy gold on the market for $370. Julius