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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (10511)	3/20/2004 8:53:56 PM
From: Archie Meeties	Read Replies (1) \| Respond to of 110194

While there's no doubt that fund interest in metals developed in 03 and continues now, I think the increase in speculation by itself doesn't account for the rise in price. If it did, then sellers of real metal could sell to real buyers of metal at a widening discount to the paper markets, and over time the markets would realign because of arbitrage opportunities. IOW, speculative pricing can't be sustained long term without cooperation, indeed, the facilitation of real markets. OK, if there is a major meltdown, will stock funds raise cash by crossing fund lines and sell leveraged commodity positions? Maybe, but that's a seperate issue.