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

To: lorne who wrote (26473)	1/19/1999 2:28:00 PM
From: baystock	Respond to of 116764

<< This sounds like returning to some form of gold standard>> To me it just sounds like another variation of the theme "gold pays no interest so why hold it". A bank would take gold deposits from individuals and then sell the gold short to use the money for other purposes. This scheme, like central bank leasing, assumes a flat or declining price of gold. But if there is a sharp rise in the price of gold the bank will lose money because it will have to cover its short at much higher prices.