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 Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: waldo who wrote (21679)	10/15/1998 5:54:00 PM
From: E. Charters	Respond to of 116768

Most of the gold loaning and selling was done by intermediaries who in turn use this to buy more forward gold from the producers. Producers rarely dealt with banks directly. The intermediaries sold more gold than could be produced. They cannot make this gold up easily in a price rising scenario. As they close their shorts or the gold loans get called the price rises too fast for them to close their shorts which are between 435 and 275 dollars. By the time all 8,000 tons is closed the price will be at 500 dollars easily. No one is selling forward as of now at 400. Some contracts are locked in at 400 but it will drive the buyer bankrupt and this will reverbrate down the credit chain. As the price rise the price of calls will rise too and there is not enough credit to buy write the calls. EC<:-}