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

To: Hawkmoon who wrote (27389)	1/31/1999 12:29:00 AM
From: Gord Bolton	Read Replies (1) \| Respond to of 116764

Basically the difference is that in one case someone might be selling gold which actually exists. If the gold actually exist presumably one might have a chance to buy it back if needed. In the second case one might be selling gold that does not exist and is not in circulation. Could be a smart move in a market where the POG is falling but what happens when the price spikes up and there is very little gold available to buy to cover the short? There have been some very good articles written recently on similiar things happening to companies which issue stock. Some people choose to sell the stock short without actually owning it. In some cases the brokerage house will borrow the stock to sell it short and in some cases the houses themselves engage in what might be called a naked short. They are selling stock which does not exist. Catch me if you can. Example DOG.VSE company accidently hits Bonanza gold while exploring for graphite in moose pasture. News leaks out from drilling crew. 10 million shares trade in one hour as insiders and houses scramble to buy back the stock they just dumped and cover their shorts. There is only 2 million shares issued. Price spikes from .002 to $5.00