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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (23633)	11/6/2003 2:48:45 AM
From: que seria	Respond to of 39344

Thanks, Claude. I'm interested in that lawsuit only to see if it reveals the source of any gold that was borrowed or pledged as part of short sales/hedges. I doubt it will. Turk reports the injunctive relief request as though it has a serious chance of being granted: Blanchard has requested an injunction against the defendants. This means that if Blanchard wins the case, the defendants will be forced to cover their short position. I don't know Morgan's position - whether long or short - in gold because it is not disclosed in its financial statements. But according to Barrick's latest financial report, it is short 16 million ounces. If Blanchard prevails - and there is still a long road ahead - it will be interesting to see how the gold market would respond to the buying triggered by the injunction. I haven't read any of the briefs or the applicable law, but knowing the issues in general and the judicial mind in particular I'm guessing that such injunctive relief ("Defendants are hereby ordered to cover their short positions") has a near-zero chance of standing up on appeal-if it were granted by the district court. That itself seems quite unlikely, although it's true that strange things can happen at the trial level. If the district court orders such relief, even JPM and ABX will likely present buying opportunities, shocking as that may seem.