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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (18736)	12/10/2004 2:09:55 AM
From: The Vet	Read Replies (1) \| Respond to of 108972

Taikun, I have a suggestion for you... Whenever you read a legal document, don't skip the "Definitions" pages or otherwise you end up making an ass of yourself. Also taking odd lines out of context and then building an argument on those few, out of context words, is not very productive. In fact the Purchaser is a defined term and in fact on the front page it is defined who the "Purchaser" is... And I Quote UBS Securities LLC, also called the Purchaser, as underwriter. In fact all those things that the purchaser was able to do were simply put there to protect the underwriter so he could hedge the physical position he was required to establish prior to the actual offering being made to the public and during the initial period that the offering was still the risk of the underwriter. That period has passed. The "Purchaser" is NOT the trust, GLD management or anyone else. The "Purchaser" is the initial underwriter ONLY. Your piece on the "Authorized Participants" says nothing. All "Authorized Participants" are brokerages, banks etc. who have the appropriate qualifications to trade in all the relevant markets. It is not surprising that those participants may use the futures exchanges as part of their normal course of business. Just because they are trading GLD they can't be banned from other markets, That's just silly. I would expect that while in the process of creating parcels of GLD that they may indeed cover themselves against rapid fluctuations in the POG to protect their short positions. Rarely can anyone buy or sell 100k shares of anything in a single transaction so in the time it takes to accumulate of distribute a 100k parcel any prudent trader would consider protecting his risk over the time he was excessively long or short.