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.

Gold/Mining/Energy : Mongolia Gold Resources -- Ignore unavailable to you. Want to Upgrade?

To: Mark Bartlett who wrote (3552)	5/23/1999 6:53:00 PM
From: d:oug	Respond to of 4066

Mark, thanks for explaination on what a gold loan overhang is. I tried reading the gold thread long ago but gave up after not understanding the flow of events talked about. Ever since the very recent Bank of England released the news of its intent to sell 1/2 of its gold, I started to read the gold thread again. Also the GATA web site and Le Metropole Cafe I found to include common sence and plain English accounts of what may be happening, eventho some of the information seems to be on the wacky side. This Bank of England I assume is England's Central Bank, which I assume is like the USA Federal Reserve with Alex Greenspan. One thing I read many times is something like: ...they borrow this money interest free and then invest it... I'am not sure, but I get the message from what I read that those outside the Central Banks who buy and sell gold find it much more easy to have their gold not in actual gold bars, but a paper that represents it existence. The wacky things I get from reading is that there is gold brought and sold and invested that has not beened mined yet, its still in the ground, and to add to this wackyness is that the purchase for the gold may not happen until later. I must be wrong here because its as if I can buy a gold bar from MGR when MGR does not yet have it out of Bumbat's ground. Also, pay for it later at a price that may not equal today's POG (hedge? or future?). If above happens, which I hope not, then this gold bar still in the ground can "travel" between owners as a piece of paper. I better stop here, too many smoke and mirrors which can cause dishonest people to play it, and also can cause temptation for honest people to gamble and loose. Doug