Strong Buy Recommendations by Eyres Reed.

Low Risk....

Battle Mountain, Euro-Nevada, Franco-Nevada, Normandy, Prime Resources.

Higher Risk ( reported negative Q3 1997 earnings ) ...

Bema Gold, Dayton Mining, Goldcorp, TVX Gold

So, who are Anglo and RTZ going to absorb first ?!

Haggis

G'Day,

This might be stating the obvious, but in todays market everything appears to work on marginal transactions, the shorter the time scale the better. In discussions with some Stock Brokers in Perth recently concerning parking a 3000 square kilometers exploration tenement portfolio in the Northern Goldfields of Western Australia, highly prospective for gold and nickel as the portfolio is on the door step of Mt Keith and Nimray-Jundee, I was asked by the Broker...where are we going to make money ( in this market ) . This caused me a problem, as I am a fundamental believer in exploration, development, production ... to produce GOLD metal. I am a Geologist.

Given what is happening in Asia at this time, with the immediate past mis-allocation of funds chasing short term margins, if you had a choice where would you put your investment funds now, with a view to future intermediate to long term returns?

G'Day,

This might be stating the obvious, but in todays market everything appears to work on marginal transactions, the shorter the time scale the better.

In discussions with some Stock Brokers in Perth recently concerning parking a 3000 square kilometers exploration tenement portfolio in the Northern Goldfields of Western Australia, highly prospective for gold and nickel as the portfolio is on the door step of Mt Keith and Nimray-Jundee, I was asked by the Broker...where are we going to make money ( in this market ) .

This caused me a problem, as I am a fundamental believer in exploration, development, production ... to produce GOLD metal. I am a Geologist.

Given what is happening in Asia at this time, with the immediate past mis-allocation of funds chasing short term margins, if you had a choice where would you put your investment funds now, with a view to future

G'Day from Kalgoorlie in Western Australia.

Key issues for consideration, outlined by Eyres Reed Brokers...........

1. The gold share market has been ravaged by the weak gold price and tax loss selling.

2. The current level of panic in the gold share market is negatively correlated to the euphoria surrounding Bre-X. Is there any balance?!

3. The World Gold Council's latest report on the gold markets shows that gold demand in the first 9 months of 1997 has grown by 10%.

4. The gold price may be a function of NOT being forced down by long term fundamental demand/supply issues, but by the short term objectives of certain hedge funds.

5. Short sellers of gold are ruthlessly exploiting the fragile sentiment in the gold market. In direct contrast, the fundamentals point to a sharp change in the direction of the gold price.

6. The current gold market has a strong correlation to the market

is being used a lot. The thing that makes it a beast is that

you need to find, identify, and fix each reference to a date-

in input, processing, and output.

Think about doing this for 30 million lines of code.

Now think about changing those databases while they're in use.

By a dozen programs. Running 24/7.

After reading your posts, I have one question.

What seems to me to be a solution far too simple:

1 ) Create a subroutine which intercepts all date inputs to the program and subtracts 2 years.

2 ) if negative, add 100 ( 00 becomes '98 ) ( Trash 1902 and before )

3 ) Go into the database using dates and subtract 2 years. ( erase 1902 and before )

4 ) After calculations, etc, are made, intercept outputs and add 2 years before printing results.

This would work for most uncomplicated, stupid programs, which only look at the date and compare with a database. It might require some manipulation of other subroutines. Comments?

His story is as factual as it is indeed fascinating. Although his analysis was based upon fraudulent information fabricated by the unscrupulous management of Bre-X, his evaluation was nonetheless flawless. It is indeed a captivating read...

http://www.gold-eagle.com/editorials/kutyn120897.html

Any other ideas?

Fortunately, I will get my $400 gold ere long, and I suspect the events that accompany its rise will not be altogether pleasant.

Once again, this continues to be a very fine site, frequented by fine people. My thanks to all who post in a civilized, informed, and generous manner.

As an aside, God help anyone who follows the advise of these people. If you can believe it, in one of their sample newsletters which they make available to show the wealth of valuable information they contain, there is an article stating that gold is looking strong and likely heading up. This was published in the spring of 1996. When did the gold bear begin in earnest? Hmmm? Seems their info is questionable, but they're not too smart either. ( They could pick a different issue as a sample! They must have gotten something right sometime! )

tent = the global economy, as 'maintained' by the U.S. economy, stock-market, and 'U.S. dollar-imperialism'.

center-post = the U.S. stock market & economy

side-posts = the economies of the U.S.'s major trading partners - Europe & Japan, plus Mexico & Canada

the stakes = the economies of the 'Pacific Rim', the 'Asian Tigers',

including Hong-Kong, S.Korea, Tawaian, and India & China.

Here is a duplicate of the text/poem, posted on kitco.com's discussion-board, on Sept. 27, '97:

When the 'tent' collapses

it will not be the center-post

that goes first;

it will be the 'side-posts',

and even the 'stakes'.

For, as 'Asian Tigers'

shake, shudder, and quake;

shedding their fur...

while they feign to demure.

Just when a cold wind,

begins to blow in;

as 'indian-summer' - too long

holding on;

with wishful thinking, all a-long.

The markets can no longer avoid nor hide,

the Yuppie-Kingdom's crumbling, and cry;

as winter's clearing cold and rain,

clean us all, and clear out, even

all of our grains.

And some day in the future,

all will be clear;

while now, every stock market around

will 'tear',

and give ground.

.....

( to be continued )

Sincerly,

David Blair Macrory

goldfevr@pacbell.net

Thx, in advance, for your help.

The World Gold Council has a chart showing the relative price of gold weighted by the share of the major buyers. Check out the following link.

http://www.gold.org/Gedt/Gdt20/High20.htm

For a more detailed discussion, check out my post of 17:16 yesterday ( Dec 7 ) .

The real question is, since the price of gold is not down, why do we expect it to go up? There are answers, of course, but it is clear that What goes down must go up does not necessarily apply.

I think the bottom line is that if the Swiss banks are merging -- what does that say about the rest of the world's banks?

I have two unrelated questions.

First, have you ever looked at Debouchet Wavelet analysis? If so can one construct real-time graphical predictions of say, market trends? And, can one mathematically compare one time series to another with wavelet analysis? The method ( wavelet analysis ) looks very exciting, as one can analyze a finite time interval with discrete time limited wave packets without the boundary condition problems of fourier analysis.

The second question relates to the earth. One reason I always thought the flipping of the earth's axis was nonsense, is because it would be nearly impossible for any external force short of a direct collision with an asteroid to impart enough energy to tip the earth. However, how does one explain the fact that the south pole ( I think it was ) was once tropical?

How about this: What if the earth's crust was considered like the loose skin of a peach -- namely that it is a thin solid layer sitting on liquid magma? Then- relatively little force would be necessary to tilt the earth, simply by sliding the earth's crust. I would guess that this might take 100 years or so given the viscosity of the magma, and probably would not happen unless the pinning effect of the earth's magnetic field was gone.

What did your calculations of the effect of China's giant planned new dam reveal regarding the stability of the earth's rotation?

Thanks -- JTF

I know there are programs that can create reverse engineered assembly language code that one can follow. I would guess that this would not be easy, and that the flow diagram ( can't remember the name for this ) of the program would be extremely difficult to resurrect. Am I right that even one trained in assembly language would have a very hard time reverse engineering the program? One might end up rewriting the entire program just to correct a few key lines of code.

Do I have this right? Thanks in advance -- JTF

Also, if awareness does not pick up *very* soon, start buying the inconsequential everyday type things that will be in short supply and will sell well in a post-Y2K meltdown.

If you aren't visiting the comp.software.year-2000 newsgroup, drop in and browse about. Also drop in and ask any questions you like at

http://www.ntplx.net/~rgearity which is our Y2K chat room, any night from 8pm to 10pm EST in the US. It's mostly programmers, but the knowledgable ones are usually there. Also, on the subject of electric utilities, try http://www.accsyst.com/writers/status.htm

Aa..., I forgot. Things are different this time.

Doesn't sound good, does it? And how much of this SOEs debt is foreign?

Most of it? Japan? Korea? Europe? US?

I certainly don't want a crash, but I am selfish I guess because I do want to see the human race make it to the stars in my lifetime. I don't want do go down in a blaze of glory before this happens.

It would certainly help if everyone came back to reality slowly, and realized that we must stop printing money without limit, and reduce our debts. Going back to a gold standard as outlined by our AG would be a start -- not physical gold, but the University of Warwick 1990 symposium type of gold standard that would work well in our modern systems.

Did you know that the Canadian people just voted to reduce their debt? Why can't we learn from them?

1 ) the Kitco forum is not the place to discuss such matters,

2 ) Y2K is ( in your opinion ) not a problem,

3 ) if Y2K is a problem, the banks of the world have the situation in hand, or

4 ) not even the Y2K problem will have any effect ( up or down ) on the price of gold?

I will be curious to hear your reply, because I see much sense in what you have to say, though I do not believe you have the corner on investing wisdom ( yet ) .

You talk of American achievements, and they are great! But aren't you mad that our crazy sytem will prevent any of us ( not just Americans ) from going to the stars?

I am -- to me it is especially frustrating to have the stars nearly in our ( human ) grasp, only to be stymied by a musclebound US ( and world ) government that is buried in red tape ( too many laws and special interest groups ) and a nearly backrupt economic system. How can all of our great minds in the USA create sucessfully when we are now known to owe more money than Japan?

You see, you need things for human greatness -- a stable social/economic system, well educated human scientists, and the money to support their research. Have you tried to get a research grant lately?

You apparently know how to get our space program back on track -- why don't you tell us how to do it?

The similarities are breath taking. And it comes so easy to them -

lying that is.

That is Fahd - not Faad I tink -

One day you may get something right - inshallah

Your motivation for providing the SITE was clearly

altruism and love of fellow man - claro -

However, I questioned the motivation for your

CONCERN which you seem unable to answer.

If you want a more serious newlink try

http://www.bday.co.za/ . Its the Business day site.

I noticed some other headlines on the site you

offerred -

Gold Mining in Crisis - July 21,1995

Gold mines struggle to survive - July 28,1995

As they say in outer space - deja vu all over again

- For the unnameable one.

You have given yourself away in your 12:54.

Earthlings do not spell believe that way. You have

used the dreaded Yog-Sothooth spelling and I think we

may be in for it.

$$$$ UNSOUND AT ANY PRICE $$$$

The Federal Reserve, the Dollar, and the next Crash and Bust.

U.S. mutual funds are allowed to prohibit withdrawals at times of market catastrophe, if they receive an exemption order from the Securities and Exchange Commission...

( After the crash of '29, the Dow declined from its closing high on September 3rd of 381.17 to a closing low of 59.93 on July 8, 1932. Staying in was very costly ) .

http://home.clara.net/millenniumint/rsresearch/UNSOUND.html

U.S. and other dollar exposed investors should take advantage of the depressed price of gold and the relative window of opportunity between

now and election of 2000 to diversify and reduce dollar exposure. Gold purchases ( physical, mining stocks, or futures and options ) are

especially attractive with gold in the mid $300's [must be even more attractive now : ) ]

http://home.clara.net/millenniumint/rsresearch/dollar1.html

THE GOLD STANDARD: AN ANALYSIS OF SOME RECENT PROPOSALS [1982]

http://www.cato.org/pubs/pas/pa016.html

Rubin's just ANOTHER...

http://mouth.pathfinder.com/fortune/magazine/1995/951127/realcheck.rubin.html

Just for fun...

http://www.another.com/

irc.another.net ( Internet Relay Chat )

P.S. Panda--Debbie asked me to tell you that she doesn't have an e-mail address so she can't post, but she hopes to continue to read yours. She has one request, though--could you post a chart of something that goes up? She doesn't see the point of looking at things that go down. ( As I said, she's a bit slow ) .

My fervent feelings, is for a healthy good bounce in the price of gold, hopefully at the expense of the gold bears rather than fellow gold mining shareholders.

Cheers

I think they are calling you home - or was that your daddy telling

you to get away from his computer.

Nomercy

concern is a pompous word normally reserved for the chairman of

the board - you're not him.

The newslink is fine and dandy. But I am confused that you are so

concerned. What is the motivation for your concern

The largest part of the platinum demand is unfortunately for

jewelry in Japan. That sector of the demand spectrum must be

perceived to be in difficulty.

Is seems that in the USA, however, companies do not want to even recognize Y2K issues.

Earlier this year, I worked with two $50B+ companies that were expanding with mergers/acquisitions. Both companies were focused on the merger issues, and both were indifferent to the Y2K issues. Each had two or three people working on surveys and management plans, and absolutely NO ONE was working on actual repairs.

I am concerned that you are concerned that the gold

price in rands is down to 1400 - This concerning

development is in large part due to a special branch

of mathematics - multiplication.

For example - if one multiplies the price of gold

in $ by the value of the dollar in rands - one

always gets the rand gold price.

Lets try and see - 288$/oz times 4.87rands/$=

1402 - yep works every time.

Why does that bother you so much - were you expecting

the rand to tank because of the fall in the gold

price. I have explained separately that gold represents

only 20 % of RSA exports - 10 years ago it was 50 %.

It seems like every time a few of you guys gets some

shred of information on RSA, you get very excited about

it and express great concern or something like that.

Like poor nasty Winnie and her daughter ( you missed

that one - gee ) are kidnappers and murderers and she's

going to be president - oh my god.

That same Press that is frequently quoted to me was

calling winnie her a SAINT some 10 years ago. And so she

becomes DEPUTY President so what. From what I read on the net

the US President seems to be a serial killer - foster

- brown - where will it end.

Im beginning to understand the problem. The crazy p/e

multiples that apply to N.American mines must have

been built upon the implicit assumption that RSA

would go down in flames, their mines would implode,

and 40% of the world's gold supply would disappear as

a result. Gold would go through the roof and the

nutty north american p/e ratios would be justified.

I believe some of you may be concerned that it

hasn't happened.

But dont be concerned, nomercy, im not. The rand will

probably slip a bit more against a very stong $ - but

not much - on a PPP basis its at least 10% undervalued.

The $Gold price - who knows. Maybe you could DEvalue

the $ against the rand and make the RSA mines

uncompetitive that way. I dont think so. We are all

headed down the same tube.

1 ) Euro is postponed to allow Y2K work to proceed as much as possible before 2000/01/01, some failures inevitable, but banking returns to normal in X months.

2 ) Euro work continues, flying in the face of Y2K, resulting in massive failures and collapses, years to recover, Europe as a major economic power will be kaput.

I don't think I'm out on a limb predicting that the Euro 'official' start date *will* be moved. As an aside, I posted my resume on the web. Got a response from a headhunter in England -- offering twice what I make here in USA. They are desperate for programmers at any price, but there aren't any programmers left -- at any price. ( *Quality* programmers, not six-week COBOL wonders from the offshore code factories )

No idea what the financial ramifications of this Y2K-versus-Euro might be, but I invite speculation. It may be, as Year2000 pointed out at 9:10, USD may be a good investment in the next couple of years...

In the past, a rise in the price of gold, or a sudden drop of one major currency would set off the inflationary alarm bells.

It is also quite clear that the EURO lauching on 1/1/1999 will not bail out the dollar. All of the G10 currencies will thus go down together eventually. Given that the no inflation deception can now be maintained for a longer period than it could have been in the past, the crunch will be worse when it finally comes.

My guess is that we will have our true gold-backed ( electronic ) currency, but only after it rises like the Pheonix from the ashes of the US dollar or the EURO. For a time we will also have very stringent rules about debt creation as well.

Isn't it ironic that the world has always had a single world-wide currency -- namely gold? There is really nothing special about gold as a currency, with the exception that no one has been able to create large quantities of it. If gold could be inflated, our economic leaders would certainly have done so, in order to delay the inevitable.

Just by extending massive loans to Asian Banks, the IMF IS NOT ADDRESSING THE ESSENCE OF THE PROBLEM: Which is simply that the borrowers cannot repay their debts! UNFORTUNATELY, ASIAN Debtors bit off more than they can chew financially.

It doesn't take a double Ph.D. in Mathematics AND Finance to understand the ludicrous folly of the Asian Banking Debacle looming on the horizon of the Land of the SETTING Sun... and the horrific ramifications which inevitably will ensue.

THIS is the LATEST analysis of the Asian Banking Domino Effect by John Kutyn -

http://www.gold-eagle.com/gold_digest/kutyn120497.html

http://www.afr.com.au/content/971208/market/markets9.html

The beloved ( among bulls and bears alike ) Ted Arnold Speaks....

away...no really

Éßgoneunlesstedpopsoffandtheniwillsendhimaletterbombbutitwouldtakeayeartogetdeliveredgogold

Ted - That one hurt.......DOH!

All - Have a Grateful Day......gotta go!

btw - that pesky US$ is sure being a Baaaaaad Boy today.......hmmmmmm...

Away.....to the grind...eh, nickC

Éß

that reminds me NickC. I read an article in the newspaper regarding your beloved Bherriwerri Young tribesmen. Ya guys aren't letting them swim for the scallop's anymore.....calling 'em poachers. They had a little 'town' meeting in Canberra. Did you hang any of them!? ;- ) C'mon...give 'em a break, they just want some sushi for din din.

go gold!

Has everyone been watching the runs on banks in Japan? You ain’t seen nothing yet! Wait about two years. Your bank’s systems won’t be able to tell your account balance! It’s not going to help if those accounts are insured by the FDIC, if the bank can’t figure out your balance.

Everyone is talking about gold, but maybe paper U.S. dollars will be a good investment. Any thoughts?

THE TRUE STORY OF THE THREE LITTLE PIGS

Everybody knows the story of the three little pigs. Or at least they THINK they do! I'll let you in on a little secret. Nobody knows the real story, because nobody has ever heard MY side of the story!

I'm the wolf. Alexander T. Wolf. You can call me Al. I don't know how this whole Big Bad Wolf thing got started, but it's all wrong. Maybe it's because of our diet. Hey, it's not my fault wolves eat cute little animals like bunnies and sheep and pigs. That's just the way we are. If cheeseburgers were cute, folks would probably think you were Big and Bad too!

But like I was saying, the whole Big Bad Wolf thing is all wrong. The real story is about a sneeze and a cup of sugar. Way back in Once Upon a Time time, I was making a birthday cake for my dear old granny. I had a terrible sneezing cold. I ran out of sugar. So I walked down th

The financial markets remain in denial over mounting cyclical risks in the US economy. There can be

no other explanation for a bond market that held its own last Friday in the face of November's white

hot labor market surveys. Whether it's the power of the safe-haven play or the new-paradigm bet, the

willingness of investors to turn the other cheek in the face of surprisingly powerful cyclical evidence

tells us as much about the excesses of the markets as it does about the strength of the economy, in my

view.

Even for growth bulls like ourselves, the strength of the November labor market surveys came as quite

a surprise. Not only did last month's job growth surge ( +404,000 ) run fully 70% faster than average

gains over the preceding six months ( +235,000 ) , but there were further signs that the US economy has

moved sharply through its inflation-stable ( NAIRU ) threshold. That shows up loud and clear in the

form of an unemployment rate ( at 4.6% in November ) that has now set a 24-year low for two

consecutive months and a wage cycle that has now moved to an eight-year high of 4.1%

( year-over-year ) .

Equally compelling is the outsized surge in labor input that has occurred in 4Q97 and the implications

this development has for measured productivity growth. According to our estimates, the index of hours

worked will rise close to 5% in the current quarter; in the context of our estimate of 3.2% growth in

real GDP in 4Q97, this implies an outright decline in productivity in the 1.5% to 2% vicinity --

sufficient to unwind a large portion of the outsized productivity gain of 4% that occurred in 3Q97. We

argued at the time that this productivity pop was not sustainable, and the November labor market data

support that supposition. Like it or not, the US economy is now revealing increasingly classic

late-cycle inefficiencies that underscore the mounting risks of earnings compression and/or higher

inflation -- in sharp contrast to the new paradigm bets now embedded in the financial markets.

As I see it, the US economy now qualifies for a Stage II inflation alert. The first stage comes when

growth is sustained at a pace well in excess of the US economy's inflation-stable speed limit, which

conventional estimates would place at around 2.2% in the 1990s; for the record, real GDP growth has

now averaged 3.4% over the past nine quarters, more than sufficient to meet the Stage I criterion.

The second stage of an inflation alert occurs when there is evidence that the forces of supply and

demand have taken the economy through its cost-efficient threshold; a 24-year low in the

unemployment rate and an eight-year high in the wage cycle more than satisfy this criterion, in my

view. The third, and final. stage comes when there is an outright acceleration in the CPI; while that has

yet to happen, it remains our forecast for 1998.

The consensus, of course, doesn't see it that way at all. Hooked on yet another slowdown bet -- this

one driven by the Asian flu -- convictions are deep that the economy will slow into the 2% to 2.5%

zone in 1998 and thereby alleviate any potential outbreak of inflation. That could well turn out to be a

risky bet, in my view. Forget the debate over the magnitude of the Asian impact on the US economy; I

continue to believe that it's going to be small ( say 0.25% off 1998 GDP growth ) , whereas many

believe it could be three to four times that magnitude. What matters most, however, is that the

economy has now experienced such a significant breach of its inflation-stable threshold that cyclical

relief will not come that easily, even if the consensus bet on Asia is correct. That's the conclusion that

falls out of an output gap analysis which stresses that the US economy is already operating at least

2.5 percentage points above its full-employment potential; according to our estimates, such an

overshoot in growth can only be eliminated by a growth shortfall that is sustained in the 1% vicinity for

at least two years. As I see it, the Asian flu won't do that job -- only higher interest rates will.

As a result, I believe that it's now appropriate to draw Fed credibility into question. Alan Greenspan

said it all in early October when he warned that the US economy was on an unsustainable track that

must lead to higher inflation. In the context of that unmistakable warning, had it not been for the

severity of the Asian crisis, I continue to believe that the Fed would have tightened on November 12

by 25 basis points; moreover, the just-released November labor market report suggests the central

bank would have probably made another such move at its upcoming policy meeting on December 16.

However, with the Fed's focus on crisis containment, no such imminent move is expected. That means

the monetary authorities are about to fall 50 basis points behind the curve they would have embraced

were it not for the Asian crisis. Consequently, under the key presumption that crisis contagion subsides

by early 1998, we continue to believe that the Fed will have a lot of catching up to do. The US

economy has significantly breached its inflation-stable threshold, and the minor hits we expect from the

Asian crisis are not enough to change the cyclical endgame of rising interest rates in 1998.

Stephen Roach ( New York )

http://www.ms.com/gef.html

the 320 range, which I think would be the first level of strong

resistance on the daily chart. Here is a thought for readers. The last

few weeks, if you follow news stories, we have been inundated with

reasons as to why gold is no longer an investment of choice. If you took

the same reasons and applied them to stocks, why would anyone want to

own stocks?

Commentary:-

http://www.oextrader.com/

Asia and the bull market in US stocks, bonds and

the dollar could carry on for many more years. The

yen could drop below 160 to the US dollar by next

year and the currency crisis that began in Southeast

Asia will spread from Northeast Asia to Europe

within a year.

At least one thing will be certain: there will be a bull

market in volatility and a wrenching destabilisation

of the economic world order. Eventually, the

instability created by volatile capital flows will force

the world back towards a system of fixed exchange

rates.

http://www.scmp.com/news/template/templates.idc?artid=19971207223313064&top=mar&template=Default.htx&maxfieldsize=5563

cause for concern

MONDAY, 12.00NOON: BULLION's declining fortunes

saw the rand gold price hit a two-year low of R1 400/oz on

Friday in spite of the local currency's crash to a new all-time

low against the dollar.

There are fears in the gold mining industry that this new blow

could worsen an already desparate situation. Normally, a

dive in the rand exchange rate against the dollar would see

the rand gold price increase, but bullion's latest lows have

cancelled any gains from a falling rand.

With gold mines already planning large-scale rationalisation

that will inevitably lead to job losses, the low rand gold price

is likely to exacerbate the situation.

http://www.mg.co.za/mg/za/news.html#business

begun to repurchase the U.S. bonds held by the

Japanese, or banks in this country are facing a severe

liquidity crisis because of the Asian situation and the

Fed is quietly bailing them out.

Either way, this isn't good for the U.S. Growth in the

money supply of this magnitude will soon ignite

inflation fears.

http://www.nypostonline.com/business/1445.htm

The signs are so clear, yet the unimaginative continue as if the industry that provides the stuff they are shorting is going to provide them with the material to cover their positions.

-------------------------------------------------------------------------

SEN. HILLARY RODHAM CLINTON ( D-NEW YORK ) ?

FIRST LADY Hillary Rodham Clinton: A U.S. senator from New York in 2001?

That provocative idea was broached with Mrs. Clinton at a White House party last week by New York Democratic Chairwoman Judith Hope, an Arkansas native whose father was once speaker of the Arkansas House of Representatives.

http://nypostonline.com/news/1443.htm

G'Day from Kalgoorlie in Western Australia.

Last week I posted some open file information concerning HIGH GRADE SILVER mineralisation at the Munni Munni Complex in Pilbara District of Western Australia.

Grades up to 37% Silver, with a possible mean grade of 5% silver ( equivalent to a 50% Nickel ) . What a ripper.

Early days on the exploration, grade now confirmed, tonnes upside. Both stocks should do well.

Check it out in The Australian newspaper, 8 December 1997.

Headline.....East Coast find marks dawn of its silver age.

http:/www.australian.aust.com/business

Aye,

Haggis

Mixed Signals in 4pc Aussie export slump

http://www.afr.com.au/content/971208/news/news6.html

Malaysia makes drastic policy changes

http://www.afr.com.au/content/971208/world/world1.html

Fourth largest Korean ship builder collapses

http://www.afr.com.au/content/971208/world/world2.html

Gold plunge keeps ratings agency S&P busy revising

http://www.afr.com.au/content/971208/invest/invest5.html

Gold crash may hit $US250/oz

http://www.afr.com.au/content/971208/market/markets9.html

Silver tests ratio's mettle

http://www.afr.com.au/content/971208/market/markets10.html

Two Views of Asian Fallout & Dog of the Week

http://www.afr.com.au/content/971208/market/markets3.html

Central banks and official funds are questioning the

appropriateness of gold as an asset class.

http://www.afr.com.au/content/971208/market/markets6.html

Markets suspicious of Japanese intentions

http://www.afr.com.au/content/971208/market/markets8.html

Korean steel hits US & European production

http://www.afr.com.au/content/971208/market/markets11.html

'True Cost' of Middle East Oil Exceeds $100 Per Barrel,

U.S. Desert Storm Military Leader Says;

Ethanol Cleans Air In Brazil

http://biz.yahoo.com/prnews/971205/dc_fuels_for_future_1.html

When the world began to melt

http://www.euromoney.com/contents/publications/euromoney/em.97/em.97.12/em.97.12.1.html

Why the IMF is wrong

http://www.euromoney.com/contents/publications/euromoney/em.97/em.97.12/em.97.12.15.html

IN REVIEW:

IMF medicine makes you sick, say critics

http://www.smh.com.au/daily/content/971206/world/world6.html

S.Korea media knock U.S., Japan on IMF bailout

http://biz.yahoo.com/upi/97/12/04/international_news/koreaimfm_2.html

IMF has the tigers by the tail - or does it?

http://www.afr.com.au/content/971206/perspective/perspective4.html

Trouble brewing in Indonesia?

http://www.brw.com.au/brw33.htm#Trouble

Is Deflation making a comeback? Nightly Business Report

http://www.quote.com/news/recent/nbr/nbr1204.html#STORY4

Shock death of a futures fund

http://www.afr.com.au/content/971206/smart/smart4.html

Killer bird flu could fly around the world in 24 hours

http://www.smh.com.au/daily/content/971206/world/world8.html

MOSSAD SPY SCANDAL: Israel, Syria came to the brink of war

http://www.smh.com.au/daily/content/971206/world/world9.html

Iraq crisis not over

http://www.yahoo.com/headlines/971204/news/stories/iraq_7.html

The changing nature of economic crises

HIGHLY INTERESTING SPEECH by Australian

Reserve Bank Governor Ian Macfarlane

http://www.afr.com.au/content/971205/verbatim/verbatim1.html

The good, the bad and the ugly banks of Asia

http://www.afr.com.au/content/971204/world/world4.html

BOOKMARK Steve’s News Page:

( Courtesy of Colin Seymour )

http://www.users.dircon.co.uk/~netking/blizard.htm

Actually I am familiar with the pickle caper ( hehe ) .

My first father-in-law did this - followed by a belt

of vodka. He would continue usually until driven to his

knees. He wound up shooting himself with his service

revolver poor bugger. He was also a champion golfer

and a top pool player.

Following that brief memorial, My own forecast -

Contrary to most kitconians, I have never made a real

forecast. I think it brings bad luck.

However, since I am so deeply in your debt, I am now

forced to do so. Here goes - I think we MAY hold at 280,

but probably not ( the force of the bear momentum is so

great ) .

In case of a 280 breech, we will then hold at about 265.

I say about 265 because I base this number on the

price of platinum - IE we will hold at 0.69 time the

price of platinum. Example 383 *.69 = 264.25.

For reference 0.69 * platinum was a prior major low.

This forecast is always subject to change on a moments

notice and depends somewhat upon how many vodka recipes

I may have been testing at the time.

I imagine this forecast will be questioned by some.

But I believe it will come to pass. You see, certain

unnameable space travellers have get it right, I get

my info from the fifth dimension and technicolor dreams.

And can you think of a better source? - it beats the

Marine Handbook.

Here's a South Africann ElNino warning post that has links for your part of the world as well -- just in case you have not seen it:

http://www.fao.org/News/1997/971109-e.htm

There is no NZ specific site, but there is one for Australia at the bottom.

Thought you might also like to know that the ElNino's affect North America as well -- it tends to come later. The 1930/31 ElNino may well have been the trigger of the infamous dustbowl period in the US midwest from about 1932-1937. I have no proof of this, but I am scrutizing historical data very carefully.

However, I doubt that the stronger CB's will want to sell gold, or even loan more good gold after the bad loaned by the weaker central banks. It is possible, as ANOTHER alludes, that a financial crisis will occur when the gold trading/loans from central banks is halted temporarily.

What is critical is whether the powers that be can handle a gold liquidity crisis, and prevent a world-wide financial meltdown.

I wonder, was there a gold liquidity crisis when that Rothschilds bank in Austria failed in 1932 ( or 1933? ) .

The only economic force more powerful than this, I think, would be a world-wide currency crisis --

Of course, gold mining will be cheaper very soon in any country that has devalued significantly relative to the dollar, and the gold price has effectively gone up, not down.