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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (1566)	10/25/2005 8:31:40 PM
From: Square_Dealings	Respond to of 218074

Gold is a derivative trade. Banks have loaned each other money several times over based on gold IOUs. So it wouldnt matter if they had chosen river rock instead of gold to write these loans against, but when the debt comes due and you dont have the gold or the river rock (or your futures position disappears ala Refco) then the price is going up. When it unwinds its a mechanical trade, it doesnt matter if you like gold or not, the debt has to be paid. All the metals have been used as the basis of major derivatives, the bankers dream up new ways to create money when they have something sitting around that they dont know what to do with. At the end of the unwinding the gold derivatives mess, the one's thats gots the gold make the rules. m