Saw this just now on the "Sightings" Website

http://www.sightings.com/politics5/gold2.htm

As someone who used to trade the metals during the 1980's I still keep an eye out on the markets, but don't actively trade anymore. (I started out as a fundamentals-oriented trader and moved to trading on the technical charts)

I find this story on the above link apalling yet not surprising. I hope this guy can actually get Congress moving on this because the Fed has no business bailing out these bankers who've decided to short the gold market down. It's almost mind-boggling to think the Fed would "lease" or loan the Gov't gold stocks just to bail out these bozo bankers. To do so puts the entire US at tremendous risk.

My question to Andy is this:

The guys who are forcing the "shorts" to deliver...are these guys betting that Y2K is more than a "bump in the road." Rumors are that George Soros is behind this. I guess he's also been buying up silver. (Reminds me of the old "Hunt Brother's" silver play.) IF so, he's playing with fire. The boys with the power put the Hunt boys away for good in 1980. All Nelson wanted to do was use silver as a backing for a new currency. So what's Soros wanting to do? Start his own currency? Anyway, whoever is behind it... IMO... is probably thinking and acting because of a perceived anticipation regarding Y2K. Would you concur on this, Andy?

Also, any further insights or updated info? Personally I am now thinking this could become a very rocky week in ALL markets. I'd earlier figured things would not do a semi-implosion until later in the month when historically the stock market gets woozy anyway. Now with these developments, anything could be possible...including a premature stock market meltdown. (I'd figured stocks would dip this month and recover till rollover then crash, now its anybody's ball game). Your thoughts?

-- R.C. (racambab@mailcity.com), October 03, 1999

Answers

If the Federal Reserve would bail me out with Stockmarket losses, it would take all the risk out of investing. Too bad they do not help the little guys.

-- freddie (freddie@thefreeloader.com), October 03, 1999.

Thanks for posting, RC. I had always wondered whether of not you were genuine, and now I know. You are a troll.

dave

-- dave (wootendave@hotmail.com), October 03, 1999.

In the early 1970's only 1 person in a 1,000 was invested in some form of gold (that's a mere 0.1%). By the time gold soared to its zenith in January 1980, the number of gold investors increased to 50 per 1,000 (5%). Recently, it was estimated that again only 1 person in a 1,000 is invested in some form of gold. Consequently, we predict that the new gold bull market coupled with the Information Highway (i.e. Internet) will increase the gold ranks to far more than 100 investors per 1,000 (10%). Moreover, it might increase even more if Wall Street tanks, forcing all to seek traditional refuge in GOLD.

One can only imagine how high bullion and gold stocks prices will eventually soar as a result of unprecedently explosive demand.

PS

Read the sherman skolnick piece on sightings. Soros is buying gold, Buffet and Gates silver.

-- Andy (2000EOD@prodigy.net), October 03, 1999.

Andy,

Thanks for the response. I had read Skolnick's report the other day. This latest posting though did impress me in that this guy is part of a committee attempting to get Congress to investigate. Not that this will do any good as I suspect the "fix" is in.

My question though is IF the rumors are correct about Soros, et al in buying physical silver...are they buying to really take and hold possession because of Y2K or is it to simply put the screws to these other folks and the Fed based on the actual lack of physical product? Somehow, it seems these guys may be in this for more than simply making some money. Your thoughts?

-- R.C. (racambab@mailcity.com), October 03, 1999.

Let's see, Congress investigating something -- it will take them six months to decided to investigate, then two years or never to actually investigate. Long before that time, LIKE WITHIN ONE TO SIX MONTHS, any investigation will be moot.

-- A (A@AisA.com), October 03, 1999.

Dave,

You stated: "Thanks for posting, RC. I had always wondered whether of not you were genuine, and now I know. You are a troll. dave"

Okay Dave, I'll bite (I may regret this), why am I being called a troll? Hmmm? I ask genuine questions as to whether or not the latest Gold rumors of a "fix" and the power play as a result might be Y2K related, or if it is more than a Y2K situation? It's a fair question far worthier than that of a title as "troll."

You, however, sound more like a troll.

-- R.C. (racambab@mailcity.com), October 03, 1999.

Dave, Pardon me if I'm not bright, but why do you think R.C. is a troll?

The article he referenced may be "subjective", but there really is a wierd thing that's been happening with gold.

Whatever the tolliness of his post, I agree with Andy about the possible scenario, and am consequently long a DEC 340 Call.

-- Gregg (g.abbott@starting-point.com), October 03, 1999.

RC

I would think take and hold.

Soros is no fool - he knows the gig is up with the US dollar. the only reason I'm speculating with gold shares and bearx is to try and make a quick killing to buy more gold before everything implodes - this is of course a very fine line and very dangerous - I stand to lose a lot if i misjudge. We'll see :)

-- Andy (2000EOD@prodigy.net), October 03, 1999.

Go Andy! I for one will be cheering for you. Hope you "cut the fat hog" as we say. Just wish I had some dough to play with.

-- dozerdoctor (dozerdoc@yahoo.com), October 03, 1999.

the adage used to be: 'better to be a year early than a minute late. still a good time to hedge. (kgc??) now we're down to days.

-- paul gamaliel (plutusx2@yahoo.com), October 03, 1999.

Paul - good luck with Kinross - is it unhedged?

The game may be up fols...

Ray Patten (10/3/99; 11:30:48MDT - Msg ID:15271) Possible Comex bankruptcy.

On Thursday, my commodity broker said that only market orders were allowed in the Gold options pit...no limit orders. I scaned my 38 years of commodity trading experience to try to remember a similar occurance, but I could not. I thought "These guys must be desperate." Then I looked at the numbers. As of Thursdays close, there were about 525,000 Gold calls outstanding. The floor traders or locals are the people who usually wright or sell us options. They have been getting our money for the last three years. As of September 21st, the committment of traders report said that the large traders were long only about 25,000 contracts. That means that the locals could be naked short over 400,000 calls. With an open interest of just over 200,000, where are they going to find the liquidity to get hedged. If Gold were to go up to $400 per ounce, their loss could be upwards of $4 billion. That could be enough to bring down the exchange.

I've had the idea for a long time that if Gold was ever freed, it would go straight to about $475 without a decent thechnical correction. It now looks to me like it will be there before the end of this month.

It's pay back time, but i'm not going to stay for the last tick. It may be that if the exchange closes, I may get nothing.

-- Andy (2000EOD@prodigy.net), October 03, 1999.