GOLD PRICE Surges On "RUMOR SMORGASBORD"greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Here are a Few Highlights:(My comments are in brackets)
Analysts say that Golds sudden strength goes beyond Placer Domes announcement that it was suspending its hedging program.(Lets see maybe like a Bubble Stock Market, Inflation Rearing it's Ugly Head, Potential Bond Crisis Etc. Is that what they Mean?)
Gold began to rise ahead of Placers news triggered by concern about the Long Bond Exposure of some U.S. Banks and the Increasing likelihood of inflation in the U.S.( Yep, thats what they mean!)
The market also speculated that troubled Ashanti Goldfields was seeking to reduce its Hedge position to pay up for derivative contracts. (I've got News For You! If Gold stays in its current trading range or goes higher, theres going to be "A Lot More Ashantis Including Investment Banks", trying to cover their Hedges very Shortly!)
Additionally a U.S. Investment Bank (Goldman Sachs?) and a German Bank (Deutsche Bank?) were rumored to be reducing short positions.(Goldman Sachs bought over a "Million Ounces of Gold LONG" on Friday alone to try to cover their Short Position! Thats Over 41 Tons of Gold they bought in One Day Folks!)
Talk was also Strong that Barrick Gold(The most prolific Hedger out there)would announce the suspension of its forward sales (I.E. Their Hedging Program)when the U.S. Market opens on MONDAY!(Watch Gold Shoot for the Moon if this happens!)
Heres the Entire Article Everyone should read it.
-- Zdude (firstname.lastname@example.org), February 07, 2000
That's zdude I'll be watch'n
-- kevin (email@example.com), February 07, 2000.
It's not going happen!
-- watching (firstname.lastname@example.org), February 07, 2000.
Its 7am Eastern and CNBC just announced that in addition to Placer Dome more Gold producer buybacks are expected to be announced (I.E. More Companies will be suspending their Hedging Programs.)
It's going to be an interesting Week!
-- Zdude (email@example.com), February 07, 2000.
-- Golden Oldie (firstname.lastname@example.org), February 07, 2000.