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

To: long-gone who wrote (31341)	4/8/1999 7:56:00 AM
From: John Hunt	Read Replies (3) \| Respond to of 116796

Pop goes the weasel (Gold Leasing) << Much has been written regarding the outstanding short position in the gold market. It is this writer's view that the gold carry trade has long ceased to have any productive function other than to allow the hedge funds and bullion banks a cheap source of capital. The counterparty risk management group which includes Chase Manhattan, Deutsche Bank, Goldman Sachs, Morgan Stanley Dean Witter and Credit Suisse First Boston plan a report this Spring. According to Derivatives Week this "will deal with credit and market risk reporting, close-out procedures and dispute resolution as well as the possibility of a master netting agreement." gold-eagle.com Reminds me of the story of the mobster visiting the NYSE in the twenties and remarking at the end of the tour " Today I realized that I joined the wrong mob! " :-)) John

To: long-gone who wrote (31341)	4/8/1999 8:04:00 AM
From: John Hunt	Read Replies (1) \| Respond to of 116796

Weekly Gold Market Update (Gold Leasing) << Increasing attention is being focused on gold leasing mainly because of rising concern about the credit quality of the growing numbers of borrowers in the market. At a recent Gold Institute Conference, Terry Smeeten, former manager of the Bank of England's Foreign Exchange Division called for an end to Central Bank leasing secrecy and suggested that the Bank for International Settlements act as central registrar to disseminate leasing activity information. Leasing has created a short position of up to 8% of the world's gold supplies, most of which rarely trades. Short squeezes occur when weak borrowers are unable to maintain their positions. Many, though not all bull markets begin with short covering rallies, and the rallies can be explosive. Last October when the yen carry trade collapsed the yen rose 17% in 10 days, even though the Bank of Japan has demonstrated all to often that yen can be created far faster than gold. >> gold-eagle.com Yeah, let's put the fox in charge of the henhouse.