主题：Gold vs Copper -- bshu

I have some issues with your article. I might have misunderstood you. If that is the case, I apologize and just ignore what I said.

1. In your description last year's copper event seems more like a patriotic campaign: evil foreign speculators are squeezing us and we are fighting back. My read of the event is these people were gambling with the state's money for their own benifits. Just plain greed and they lose.

2. The price of copper is going up because hedge funds are cornering the market and we don't have pricing power so we must sell in the paper market to push it down. I have said many times copper is going up not because of hedge funds, but because of the long term supply/demand imbalance. Trying to push it down in the paper market won't work.

4. As for covering the shorts, that's a more technical issue. You ask 总不提你有什么高招呢. Well I don't have any 高招 as I don't know the facts. But I do think it is Not impossible. I gave you an example as how Jesse Livermore handled it in a similar situation.

5. Even after its monster move before December 2005(gold didn't go up much before Dec), copper still outperforms gold, don't you agree the market is telling you something?

6. I raised the issue of silver not because I want to use silver to hedge the copper short. You might not aware that silver has become an increasingly important industrial commodity just like copper, especially for the electronics industry that is booming in china. China's silver reserve is already very low if not gong completely. You want to defend copper when it up, what about silver when it is up even more?

7. Yes China's gold reserve increased last year but I strongly doubt it is because China is buying gold after December just to hedge her copper short.Since you seem to have connections and you could be right on this. But then I am even more frightened as the central bank of china is really just another hedge fund in the market. This scares me more than losing a few billion dollars. I just don't buy it.