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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: John Hunt who wrote (16746)	10/14/1998 5:11:00 AM
From: John Hunt	Read Replies (1) \| Respond to of 18056

The Gold Market and Precious Metals Commentary gold-eagle.com << With money pouring into the system, our Fed and Secretary Treasury Rubin do not want it to appear that the fight against inflation has been thrown out the window. As public evidence of that, they want the price of gold to diddle, so as not to sound a weak paper money (dollar) alert. In addition, they know that other financial entities are using gold as a cheap borrowing source. They do not want that source disrupted for the time being and they do not want these entities to have to cover their gold shorts at this point in time for many obvious reasons. We know on Thursday, the Fed was checking rates on the dollar/yen. Whether they intervened or not, this stopped the yen rally abruptly. We know our government stepped up to the plate to bail out LTCM and there are many savvy minds that believe they have been active in the futures markets to halt stock market meltdowns. It is not much of a stretch to envision a government orchestration of making sure that plenty of gold was fed into the market place at a critical juncture and making sure that the "word" of that just happening to be passed on to the "right people." I learned for a fact that one of the big gold producers was offered huge quantities of gold with no credit restrictions, which has never been the case in the past. This offering just happened to come from Secretary Rubin's old firm on Wall Street. This firm was urging this producer with great fervor to hedge future gold production and they were urged to do so last Thursday and Friday. It is no wonder that one month lease rates have collapsed to less than 60 basis points. >>