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

To: sea_urchin who wrote (19529)	11/6/2003 10:59:23 PM
From: The Vet	Read Replies (1) \| Respond to of 81857

Searle, I am sure that we agree on these issues and we are both like the four blind men, simply describing different parts of the elephant! However, let us go back to the Exchange traded gold, of which the only real example trading at the moment which is structured to follow the POG is GOLD.ASX. With GOLD.ASX every holder of a share in GOLD.ASX is actually holding 1/10 ounce of real gold, not a future commitment or a derivative. Sure that can be traded and it will be, but as the number of shares increase then the amount of real gold actually purchased to cover those shares increases and is held in allocated form. Comparing the amount of gold held in GOLD.ASX (in this case a little over 7 tons) with the amount actually being traded in the form of shares is rather like comparing COMEX deliveries with the total contracts traded. They simply don't match for all the reasons you have already shown.

To: sea_urchin who wrote (19529)	11/6/2003 11:04:47 PM
From: philv	Read Replies (2) \| Respond to of 81857

Searle, is there any difference in what you describe pertaining to paper gold and any other commodity such as coffee beans or pork bellies? Greenspan seems to regard derivative trading as a good thing. Supposedly because it spreads the risk, but probably because the big boys can make some easy money. But there is a real gold spot and futures market that is being sold daily. Mine production plus bullion. I haven't been able to figure out if the paper controls the spot, or if spot controls the paper. If I recall correctly, a few years ago, the LBMA was trading about 900 tons/day. That obviously was paper.