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.

Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (1230)	2/4/1999 9:36:00 AM
From: Paul Berliner	Read Replies (1) \| Respond to of 3536

Thomas, Henry, I seem to be a bit confused about the debate - are we arguing that there is less gold under lease than widely assumed, or are we just saying that should some event cause a rush into gold, that the price won't zoom up in any stratospheric way because those covering the leases won't make that big a dent? From what I've read, many hedge funds use leased gold for extra leverage, and a spike which would cause them to cover on this already very profitable transaction could send the not-very-liquid gold market into the stratosphere. This is one thing that would surely knock the market on its ass - I can't even say with confidence that a RMB & $HK devaluation will anyoore. Mr. Yen said last week that the global financial infrastructure needs to be retinkered with. Schroeder of Germany made similar comments, as have officials of smaller countries. Should gold play any part in a global currency-stabilization scheme, then I have no doubt that the yellow metal would arise from its coma quite angrily.