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

To: sea_urchin who wrote (19450)	10/26/2003 5:11:16 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81994

> Strikes me he has a very big long position in gold and gets really pissed when anyone talks of selling And he admits it. But first, let's read what Andy Smith has to say. mips1.net >>>My worry is that this option machine gets stuck in overdrive; then it’s going to blow up and then it’s going to blow down. There is going to be collateral damage for the professional community....there’ll be pain at the end of this, that’s for sure. You can’t ride this monster and get away with your body parts intact,” said Smith. <<< And now, what Jim says in response --- and boy, is he upset! mips1.net >>>I surmise that you may have identified yourself with the $350 price in a professional and reputable manner. I say that because I can find no credible basis for your recent bearish position. As you may know, I derive the majority of my income from trading and investing in gold and gold shares and I firmly believe we are just entering a long term, generational gold bull market. You are concerned that the gold market is being driven by “rampant speculation.” Shall I take that statement to mean that there is some special imprimatur that says your producers and commercial interest clients have a divine right to the gold market and that their positions are clearly more proper and correct than mainstream investors? That is certainly an elitist comment and to me suggests that people like Jim Sinclair, who historically has been the largest speculator in gold, has no right to participate in that market. There is simply no executive of any producer or commercial interest for whom you deal and hedge that has ever risked as much of his personal wealth exploring for gold as I have. That does not give me any more or any less right to express my interest in the price of gold by assuming any size position I wish at any time. You believe that the option market’s growth represents the odd lotters and unwashed public. Well, Andy a good deal of it represents me! I am more experienced in trading gold than any other market participant right now- your revered self included.<<< I have to say my own view is much closer to Andy's than to Jim's and, in fact, many of Andy's comments are what I have also said. Of particular concern to both of us is the extraordinarily high level of open contracts and the very small amount of buying of actual bullion. Jim, and the other purchasers of the long contracts, however, may well be right, and the producers and the banks, who are short, are wrong. But no-one can deny that, at the moment, the gold market is being driven by rampant speculation. This conflict between the giants is fascinating and James Sinclair is certainly putting his money where his mouth is.