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To: rohry
And you know this, how?

Because that's how markets, transparent or not, work.

The derivative market is non-tranparent (there are no reports on how the derivatives are structured).

Interesting. You sound like a guy complaining about a lack of transparency when a private individual sells a firearm to another private individual.

There are computer programs driving the buying and selling of derivatives, do you know what their buy and sell points are?

You seem to be claiming that $348 is a magic number for some reason. Do you actually know the buy and sell points? Or are you merely BSing? I merely noted that various people have CLAIMED that the magic doomsday price was just around the corner for three years now.

I get a wee bit skeptical when doomsday is predicted over and over, yet somehow never comes.

Someone put up money saying that the price of gold was going to increase. They will collect when it is profitable to do so--and the alleged target figure for said profitability has gone up nearly 25% in the past three years.

Most of the contracts demand delivery of physical gold.

Fine. Then the holder of the "long" position gets delivery of the gold, and he can then turn it around and sell it on the market.

The gold that has been "borrowed" (actually sold) has to be bought on the (transparent) market. Where are they going to buy it to deliver to the "longs."

Like I said, the "longs" will simply demand cash on the barrel. If the short-seller can't buy to cover, he's f***ed. BTW, this happens all the time in the securities market.

I seriously don't think that you know what ypu are talking about...

Well, I disagree with you. I do know what I am talking about...and you most assuredly do NOT.

45 posted on 12/18/2002 4:36:41 PM PST by Poohbah
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To: Poohbah
I am in agreement with you. I have some money in the Tocqueville Gold Fund and I have made 18% this month.

Am I a Goldbug... hardly. I just like the fact that the Goldbugs make me a nice profit when the market is flat.

Look up TGLDX and tell me what you see. I look at the market and dont worry to much about the conspiracy bunk.

I think that pro-gold people tend to see plots against them. If they doubt me, stories like this have been around since there was wire-media and trading. I dont care what they think.

My father told me to be careful about Gold and I agree with him, I have made enormous profits and when they turn sour I will sell. When gold dips beyond 5%, I am OUT OF THERE. What does that leave me with?

70% is what it leaves me with! Do I think that has to do with the intrinsic value of gold? No! I invest in what THEY think the intrinsic value of gold is. Then I sell.

As far is the positions on "Long" and "Short" prices go, you are right. These people DONT know what they are talking about. Thats Capitalism folks, and when it doesn't go your way, TOUGH SH*T!

104 posted on 12/18/2002 7:53:30 PM PST by Arioch7
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