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To: Box-By-The-Riviera™ who wrote (259203)	9/6/2003 11:42:56 AM
From: Eva	Read Replies (1) \| Respond to of 436258

OK, there it is from Lance Lewis: <<Since late 2001, commercials have been net short gold, which is also the same period in which gold began its current bull move. Keep in mind that contrary to popular opinion, commercials do not “want” gold to fall when they are take up short positions (and they’re not being “squeezed” as many seem to believe). Based on the way I understand things and have been told by people that are much more knowledgeable about these sorts of things than I am, commercials are in fact long the physical. The short position that we see the futures market is actually a hedge against that physical long. The longer the commercials get, the more they sell short to hedge. The point is that a large speculator position (which obviously takes the other side of the commercial trade in the futures) does open the metal up to severe selloffs as these specs are forced to liquidate form time to time, but it’s not a bull market killer. The bottom line is that gold bull markets thrive on investment demand, period. So, that’s why I haven’t talked about the rising short position and why it doesn’t change my outlook on the metal. If one had been using that short position as a basis to be bearish on gold, they would have missed the entire move from the lows in 2001. >> Can we put the monster now back into its closet! Cheers Eva