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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (10250)	10/10/2008 12:24:10 PM
From: Cogito Ergo Sum	Respond to of 33421

Right now the gold stocks are prey like everything else to credit and general panic ... One of those unintended consequences :O) CEF.A lacks leverage but is more straightforward...

To: Stoctrash who wrote (10250)	10/10/2008 1:13:58 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 33421

What is the GLD?? It's an ETF, right? What a ETF?? It's a derivative, right? What's a Derivative? It's a promise to make good on a contract to buy/sell an underlying asset at a certain price. What did Warren Buffett tell us about the derivatives market? Anything that involved a "promise to deliver" either a physical (actual metal), or notional (stock) asset is just as subject to loss of confidence as any Credit Default Swap. Is GLD pledged to deliver your share of its physical holdings in the event of a systemic breakdown in the commodities markets? seekingalpha.com And something interesting about US mint sales of Gold coins: seekingalpha.com Something to think about.. But I hope that it's something that never becomes an issue. Btw.. lot of chatter going on about how a lot of this volatility is due to "Quants" and their program trading. The lack of a human specialist in many of these stocks means that the computers just exacerbate the human fear. Hawk