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

To: Gary H who wrote (19808)	10/21/2009 5:36:13 AM
From: ayn rand	Respond to of 29622

thanks another reason to take physical possession from reasons to own gold (from your link) like you said, worth reading for sure excellent summary ......................... Given the explosive upside potential of gold, this is a very dangerous position to have. Of note, there are large short positions on the COMEX which are extremely concentrated in the hands of a few large banks. If the longs were ever to call for delivery, there could be a major problem for the shorts because the physical gold may not be available at anywhere near current prices. sprott.com

To: Gary H who wrote (19808)	10/21/2009 5:50:15 AM
From: ayn rand	Read Replies (1) \| Respond to of 29622

12. LARGE SHORT POSITIONS Despite significant de-hedging by producers, gold derivatives as reported by the Bank of International Settlements (BIS) remain elevated with the notional value of over the counter gold derivatives outstanding most recently being reported at $649 billion. (By way of comparison, the value of annual gold mine production is roughly $75 billion). This suggests either a major legitimate bet against the secular trend of the gold price or the distinct possibility of nefarious activity (i.e. price suppression) in the gold market.the total capitalization of all the world’s gold stocks is comfortably under $200 billion. This pales in comparison to the trillions of dollars that the U.S. has committed to spending programs, guarantees and bailouts in the past year alone.