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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: The Vet who wrote (12149)	2/23/2008 5:10:29 PM
From: Wade	Respond to of 29622

Thank you Vet. You explanation made a lot of sense to me, because I have been looking for the answers why GLD didn't increase gold inventory while POG went much higher since 2006. I know it must be the huge short position but don't know exactly how it was done. Thanks a gain.

To: The Vet who wrote (12149)	2/23/2008 5:21:17 PM
From: Wade	Read Replies (1) \| Respond to of 29622

<That's $744 million cash in the short sellers pockets as a zero interest, non expiring loan.> Then, they can use it to play gold futures. Those smart a$$es. LOL

To: The Vet who wrote (12149)	2/23/2008 5:58:24 PM
From: Tommaso	Read Replies (1) \| Respond to of 29622

Some years ago I carried a very large short position for a long time, but was not allowed by my broker to use the proceeds of the short sale for any purpose. Indeed, I had to put up margin to maintain the short position. I know that a large operator like David Tice's Prudent Bear Fund can hold the proceeds of his short sales. So I would like to know who these "operators" are or might be who can short GLD and then play fast and loose with the proceeds. Also, as the price of gold rises, someone is going to be expecting more margin or security of some sort to guarantee coverage of the liability. The account you give of short selling does not square with my experience of maintaining a short position of --at one point--over $100,000. Perhaps you will just dismiss what I say by telling me that I am not very bright to allow myself to be taken advantage of in that way, but that's the way it worked for me, and it made sense that the broker wanted to prevent me from just walking away from a huge liability. I do not think that what you say holds true for individual investors unless the assets involved are in the tens of millions of dollars.