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To: Poohbah
The word on the street used to be that the gold derivatives market would blow up at $340

How do you know that it isn't? If the POG stays at these levels for a couple of weeks, you are going to see a bunch of other financial problem coming to the surface. Just be happy that we are finally being set free and that the fiat dollar is going into the toilet where it belongs.

Richard W.

27 posted on 12/18/2002 3:46:44 PM PST by arete
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To: arete
How do you know that it isn't?

Because the people who hold the derivatives would cash in as soon as possible under your scenario.

If the POG stays at these levels for a couple of weeks, you are going to see a bunch of other financial problem coming to the surface.

Your ilk has been saying this for years.

Just be happy that we are finally being set free and that the fiat dollar is going into the toilet where it belongs.

Well, if you're right about that claim, your gold holdings will do you no good. You can't eat it, and you can at least use worthless Federal Reserve notes as toilet paper.

29 posted on 12/18/2002 3:50:38 PM PST by Poohbah
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To: arete
I am inclined to agree with you, arete; however, here is an excerpt as an alternative view from Yahoo.

"VANCOUVER -- News of an antitrust lawsuit being brought by U.S. retail gold dealer Blanchard & Co. against Barrick Gold Corp. and JP Morgan Chase & Co. is being dismissed by some equity analysts as a publicity gimmick.

"Shares of Barrick fell in Toronto and New York early Wednesday afternoon after Blanchard & Co. announced its legal action. Barrick recovered from an intraday low of C$23.46 to close at C$24.45, down 0.8%. The Toronto market's gold index was up 2.8%.

"The market impact you already saw," Barry Allan of Research Capital said, adding that he believes the stock market will come to view the lawsuit as opportunistic.

"Why now? Why now, if this has been going on for so long? It's only now that hedging has become unpopular," because the gold price is rising, Mr. Allen said. "It just strikes me as being very sensationalistic."

"As reported, Blanchard & Co. claims that the Toronto-based gold producer and JP Morgan teamed up to manipulate the price of gold. Blanchard, which deals in coins and gold bars, claims that the gold price should actually be at about US$ 740 an ounce -- or US$760 counting inflation -- if the market had been able to respond to the "normal laws of supply and demand."

"In a statement, Barrick called Blanchard's allegations "ludicrous" and " totally without merit."

"JP Morgan Chase hasn't commented on the lawsuit.

The failure of ABX not fall dramatically is alarming if the legal action has merit. I guess it is the same old story--you decide it's time to buy but you cannot buy unless someone else decides to sell. Your optimism is always counterbalance by someone else's pessimism. Ha.

36 posted on 12/18/2002 4:13:58 PM PST by shrinkermd
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