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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Eldon Slife who wrote (2926)	11/7/1997 7:13:00 AM
From: David R. Schaller	Respond to of 116825

Eldon, besides selling their gold reserves the CB's also have the option of lending. They can in effect lend gold + interest for replacement at a later date. Pretty much accomplishes the same thing. Ready supply of large quantities of gold. Regards, Dave

To: Eldon Slife who wrote (2926)	11/7/1997 12:02:00 PM
From: Mark Bartlett	Respond to of 116825

Eldon, << I have been thinking that why couldn't they have sold a great deal more then we all believe.>> I suspect much of it may be tied up i.e., out as gold loans. Gold company's take the CB gold, sell it to finance their operations, and then pay the gold back out of their production. Also, it is being used to finance paper... people borrow it at cheap rates, and turn around and buy higher paying interest bearing instruments. There is also a lot of short selling going on too. There is IMO a lot of smoke and mirrors in the systemm and that is one of the reasons it is so difficult to know exactly where we stand at any given time. The area of gold derivatives and short selling is a complicated arena - I do not understand all of its nuances by a long shot ... still much to learn. MB