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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: AurumRabosa who wrote (1391)	11/15/1998 1:10:00 PM
From: Alan Whirlwind	Read Replies (1) \| Respond to of 8010

"The major users of silver have long-term delivery contracts with silver producers, they don't do their silver shopping at the commodity exchanges or the central banks." One of my small silver plays is a company which seems to be leaning towards such an arrangement. The buyer guarantees a bottom price but pays a discount to market price. Of course, as the silver price rises the discount remains, but to a higher silver price. There is currently a 200 million+ annual production deficit to consumption. There is not enough mine production to satisfy current industrial demand. If there was our remaining paltry COMEX stockpile wouldn't be drawing down so fast. --Alan

To: AurumRabosa who wrote (1391)	11/15/1998 11:17:00 PM
From: ForYourEyesOnly	Read Replies (1) \| Respond to of 8010

I agree that it is reasonable to loan out something you own......some of the PM bulls feel that PMs are money.....if so it seems reasonable for them to be loaned out for interest........I'd like to be able to deposit gold at my local bank & receive interest! I can see how leasing could influence the demand situation......the huge leasing position in gold is often discussed as an important factor.......if & when the loans are repaid it could have a major effect on the supply/demand equation.......but I hadn't heard that the silver loan positions were significant. You are right futures is zero sum.....so I can't understand what short position he is talking about....... Thanks for the response, THC

To: AurumRabosa who wrote (1391)	11/17/1998 6:59:00 AM
From: long-gone	Read Replies (1) \| Respond to of 8010

Ron, While you are correct in suggesting there is nothing fraudulent about leasing anything one ownes, that does not fully describe the current metals situation. The problem (as I and others see it) is not that some large public, central banks, and major brokerage houses have loaned metals at a lower price than production cost, it is that these same factions were in the business of shorting the metals for profit of select customers & themselves, while telling the investing public not to invest one single dollar in metals as it was a poor investment, and releasing of "news" with each rally. These actions with the (only slightly limited) control of the investment vehicles sold to public and investment advice assured a control of monies which could be invested in metals. I heard that less than 1% of Americans have available for investment of their 401K a precious metals fund. When you put these factors together, it nears market manipulation, and Bishop Desmond Tutu(and others) of South Africa have called it manipulation. rh