Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: aknahow who wrote (56915)	2/24/2008 5:09:35 PM
From: The Vet	Respond to of 78412

Ah George, you didn't read the little parable in the proper sequence. You didn't sell a single share, our friend Wade did and he has almost all his money back; I have the rest of it and all of yours in my account. Your shares are still showing in your account, lent out, to be sure, but still there as a book entry (with a real value of zero). As the value of those shares drop on the market I will bet that the margin clerk at your brokerage is going to get pretty worried. You have 3 days to sell and cover. I was a legal short, so there is no pressure yet on me, and even when the system works out that I have become a naked seller (though no fault of my own) I still have 13 days to deliver. How long before your margin clerk puts up your holding as a market order to sell... 3 days at the most! The back office doesn't get involved until you do actually sell and that's going to be rather difficult with the GLD web site showing zero gold in the bank isn't it.. You are not going to be deluged by buyers in that situation... The system is biased against the longs and in favor of the shorts. With GLD and the way that the NAV is published daily the fact that the NAV is zero or close to it will be known the very day it occurs. No room for margined longs to escape while the shorts have plenty of time.