Does anybody remember the first Blues Brothers album and a song called Rubber Biscuits? You know the one where Dan Akroyd is singing heeeey bidddda bummm bidda boddaa heeeeeee? Okay, now that you're all with me, I remember John Belushi had a line that went like this: What did I say to piss you off this time……. BaaaaaaaaaaaaayyyBEEEEEEEEEEE?

Don't know why that crossed my mind, but I feel real special about sharing.

Barb -

As seems to be your purpose, again your post is laced with hostility. I don't get it. Regarding form of payment, are you referring to cash transactions? I think everybody here is aware that any cash transaction of any sort of 10,000 or more is reported to the IRS and DEA. Perhaps it may be better said that your transaction is recorded and analyzed for patterns. Most of my clients wire funds ( which are recorded and assigned a federal reference number ) or send a personal check. Bank transactions by and large are not scrutinized in this fashion. Cash transactions are, however. Some try to bypass reportability by doing cash transactions for just under 10K. The problem with this ploy is that the purchaser must constantly find new companies to buy from. Even a couple of 5K transactions within a couple weeks will usually trigger reporting by most reputable companies. My firm does not accept cash. We accept metal, or funds from a bank. Don't know what form 8300 is, the administrative staff handles all the forms, IRAs, account agreements, statements, and W9s. I never see 'em. I hate forms. In the future, try a friendlier tone, its easy.

No, I would have to concur with farfel's 21:46, we need more investor awareness and action. If an investor doesn't like the actions of the company's management, he can ( and probably should ) dump his shares. This is what all these who are whining about the whole thing should do, if they own ABX they should sell and put their money where their mouths are.

On the other hand, if you are suggesting that the current legislation gives some players of the market an injust advantage, then you are right, we need change. I don't know what kind of legislation you would suggest, so maybe my comments are ill- aimed. I can only answer as I understand the matter, but I feel strongly that calls for increased legislation should be answered.

http://www.bog.frb.fed.us/pubs/ifdp/1997/582/default.htm

Wet Gold -

There are no reporting requirements for the purchase of bullion coins, period. Only Gold Maple Leafs, Kruggerrands, 90% silver coins, and 40% clad Kennedy halves, and all forms of bullion ( bars ) are reportable on the sell back. That's it. No other reporting requirements at all, regardless of quantity. There are zero reporting requirements when you buy the coins, only when you sell back. As I have said, reportability is not a function of the purchase but as to whether the particular commodity has ever traded in the US futures markets. If they have, they are reportable, if there has never been a futures contract on a coin, it is non reportable. That's it, the entire reportability of precious metals.

All -

Somebody save this and repost as necessary. Every time I post the reporting requirements, a flurry of what ifs and what abouts surface. If there are any questions, reread the preceding paragraph, all your answers will be found there. Consider the above paragraph the nirvana of reportability.

http://www.bog.frb.fed.us/pubs/ifdp/1997/582/default.htm

Surely there is a lesson here, for our good ole USA, the most insular, self- absorbed people of the world. There is a direct parallel to the current 'Titanic' that is - a world economy springing more & more leeks of hemorrhaging red- ink - as currency crises spread like wild- fire, one after the other, spreading like scattering sparks FROM SHIP OF STATE TO SHIP OF STAE, as wild- fires out of control, starting new fires and anew and anew and again - then anew too, in yet other nations farther & farther away - - in nations near & far ... all sinking in an sea of red ink that has beem brewing & bubbling up, and now all over the place, bubbling up, and over and out of control breaking thru the 40 yr. dam of export- bloated bankers - - institutions of control' ruled by management teams who know no god but greed, expert in the field of exploitation - natural resources or peoplr, it treslly msde o no difference, orchestrating a creit- bloated world fiancial- structure expertly managed by the blind leading the blimd - - Thus, not a nation the world over, has escaped this contagion of avarice and lust for power & control. None of us will escape this burm, and this drowns, the economic crisi, snd the crisi of survival for our very earth will see to that, and ultimatley bring us to our knees,a and to reality, aescape - a non- sequtir. escape the aproaching burn, one way; but there an on- rushin deluge traps us anon.

How can we escape?! Wea are the enemy; he is us.

Escape this pain? Escape this burn? - We are all party and perdition to its ruin. Al have eagerly participated in this easy money/credit scheme - a party of a 40 yr., float a card of crdit, no make it fivr; morgage that house, then do it again, and rfiasnace the house, get the eqyuity ut of it quit.

A joy- ride fueled on artifical credit created electronically behind locked doors, and upon paper money created by legalized counterfeiting presses, running day & nite, at weekly rates passing out billions, by the billions billions. Most of those experts orchestrated that work eat slip & use toilet psper just k like you z7 zi. Why can thet counterfeit trillions, zi get a way with it, while starving peasont woman abandoned on an frigid allley behind the zkrem;in'd spsrkline window, would endure a week a more, on one of this feeble, crumbled dollars, & she might even get asahke of asalt andsliver butter on it, by a generous paserby, who truely looked, for a fleeting momeny, deep into here eye. - -

But the counterfeits keep spinning and whinning an wining, the losing game.an all out of it out of thin - - out of thin air and out of control ..... - - doesn't sound like living within the discipline & and sane order of a sound, disciplined, open- books banking system,& monetary laws ..at all. So the flooding, and the burning, and the sinking bankruptcies flourish, floundering and sleep into the icy dream.

And the collapse of currencies spread their relentless cancer regardingless of political boundaries, and defaulting credit, as it crumbles and mushroms til itrumbles down upon the secret halls of horrified lenders and their destitue clients. Soon the sunami flood of cheapening into evenb cheap, as the devaluing imports come crashing, awashing awash arriving up & upon our once pristine & proper shores. As they wash in on the tides of strange fortnes, with their beggar- bargain prices for sale. Will we compete with those numbers and desperate, hungry vakues and needs back home, were there are painfillled hungry mouths to fee; orwe erecct trade barriers, and sing the sacred songs of our favorite patriotic songs, and erect protectionism to save our souls.......and pass the caviar & sip the mint- julips; for we are here, and they are far....... ans away with you

so will the treatened lamp of liberty flicker even more precariously

thretened not by the feble, fainting candle of the humble upon their knees reaching out to us upon our shore's lamp of economic and political liberty ...

will we alow by default or false pride and shameful retreat

strike us down

in cold integrity

when king riminds it;s all

it is now

only now

that we can act

and live fee

by his prescription alone, we can face & triump the cold & harsh & cruel of economic winter with the triumphant of living from th heart

triumphant in liberty

for whether the the lamp of liberty may flounder, for generations to come......there are the humble, faithful, quiet, enduring titans among us carrying the eternal torch...such that any a flood that might consume the the best of men and their enterprises; out all this grist for the will the milenium is stirring for a new world of monetary, banking & crdit integrity that will insure, and the millenium will insist on a ground- floor rebuilding of an internationasl money and banking - monetary - sytem .... that all peoples of the world- over, can trust, and receive compensation in, from the most thorough janitor, to the efficient basketweaver, to the shoe- cobbler, to the re- forester, to the teacher, to the eager child, to the risking entrpreneur, to the dedicated worker, to the burgeoning pysicist, to the wizzardly computer nerd.....all will be using, accepting, trusting, exchanging a single money unit, an international unit of exchasnge and store of value that command the equal and universal acceptance and ready usage of all humankind...and that can be controllled in it value, by anyone, anywhere.

Sooner or later, the competive devaluations, threatenng trade barriers, isolationism in the wings will force the economic world to the brink of making so hard, overdue choices.

The longer we wait, deny, postpone, rationalize....the greater will be the pain and suffering, in the transition into the new milllenium.

the Titanic is floundering no matter the assurances of Fed. Board Governors, Trasury Secretaries, and politicians galore...

do you think THEY will insist on providing for the women & children first ?!

Actually, I'm not a Barrick fan ( I favor the SA mines ) but if I were inclined to buy Barrick, I believe I would do it on the upcoming 'dippie' opportunity.

Perhaps this is one of the signs of 'blood in the 'gold- mining' streets' - long term institutional holders finally giving up. A buy signal, anyone?

Richmont Mines Increases Gold Production More Than 140 Percent: ( ME:RIC. ) Richmont Mines' gold production reached 72,800 ounces of gold in 1997 compared to 30,100 ounces in 1996, an increase of more than 140 percent. - Jan 20 11:50 AM EST

High River Gold Mines Ltd. New Britannia Mine Exceeds Production and Exploration Targets in 1997 for Both: High River Gold Mine High River Gold Mines Ltd. is pleased to report the excellent production and exploration results in 1997 from its 50 percent- owned New Britannia Mine; TVX Gold Inc. owns the remaining 50 percent and is the operator. - Jan 20 9:49 AM EST

...An outstanding example of a well- played misinformation game was played in November 1986, at the time of the dismissal of Sheikh Yamani, Saudi Arabia's almost universally popular Oil Minister. Yamani was far from being the fair haired boy of King Fahd. Many felt that King Fahd would have liked to see Yamani taking a firmer line over production quotas during the OPEC meeting that was concluded two weeks before Yamani's dismissal. Immediately after his dismissal, the oil price plunged since it was believed that in Yamani's absence King Fahd would take a stronger line on production quotas, which would ultimately lead to the type of free- for- all price war that occurred during the previous summer.

What followed was a second version, to the effect that Yamani had actually been fired for offering a 50 cent price discount on a netback basis without telling the King. The King, it was said, would in fact be going for higher prices rather than higher production levels. In the market, the price per barrel reacted accordingly. It moved up. The history of OPEC is riddled with this type of disinformation and misinformation, designed to influence price levels, through the medium of forecast feed- back.

Then Charles T. Maxwell, Senior Energy Strategist of Cyprus J. Lawrence came on the scene. Maxwell is probably one of the five most influential energy correspondents in the world. His track record is excellent, and his assessment of situations such as we are in now is accepted internationally. Maxwell claimed that the first explanation had been the correct one; the second version had been issued in an attempt at deliberate disinformation. King Fahd, said Maxwell, was the one who favoured netbacks. Yamani was not. Moreover the King wanted Saudi Arabia to abandon its recent role of swing producer, which Yamani had been supporting. Maxwell explained that there was a further conflict between them, dating back to the spring of 1985. The King and the Princes, Sultan and Salaman, had decided it would be wise to pursue market share - even though it meant driving down prices. This, they hoped, would drive out the non- OPEC producers, who were handicapped by having to meet higher break- even prices. Free from non- OPEC competition, Saudi Arabia would then be able to pick the right moment to go for a higher price, in an attempted replay of the early 1970s.

Meanwhile the congenitally gullible were rising to the disinformation bait. On the assumption that the worst was over for the oil market, the Taiwanese have been behind the purchase of oil wells from hard- hit owners in Louisiana and Oklahoma. Much of Taiwan's $13 billion trade surplus with the United States has been invested in what they saw as depressed US assets, available at bargain prices. They expect that rising oil prices will restore the value of the wells they have been buying. But what gives them that idea?

It would not be unreasonable to assume that the Taiwanese were deliberately allowed access to a confidential CIA report. According to this report, to which I have had access, OPEC is still capable of creating economic turmoil throughout the Western World. Supposedly the Grand Design outlined by the CIA would have a devastating impact on the finances of every single American, as well as threatening the security of the United States itself. This, naturally, was music to the ears of anyone involved in Far Eastern Trade.

The scenario was as simple as it was seductive. The Saudi bloc deliberately engineered the oil glut, bringing the price down from $44 p.b. to under $15 p.b. According to the CIA, the reason was to stop American counter- measures from being launched in an attempt to reduce US dependence on Middle East Oil. The next possible move - say the highly imaginative compilers of the report - is that the Saudi bloc, having achieved stage one of its objective, is poised to initiate another price hike. This time, the game will be played in a softly, softly manner, to avoid waking the dog. The CIA believes the Saudi bloc has the muscle to do it, and claims that neither President Reagan nor Washington is prepared to meet such a strategy.

To return from the realms of fantasy and misinformation to the real world, falling oil prices had led the US President to cut back drastically on the topping- up rate of the Strategic Petroleum Reserve. Oil companies and consumer industries followed. Mr Reagan cut the development programme, and slashed subsidies for oil conservation schemes, such as home insulation. Plans to rescue the coal industry were also abandoned.

A leading Fleet Street journalist once estimated that 10% of what he wrote was fact; and 90% fiction. It was up to the reader to decide which was which. Much the same might be said of this confidential CIA Report, which the whole world appears to have read. And it is highly likely that the Taiwanese entrepreneurs got the facts mixed up with the fiction...

Ahh- - - - but what might make the price of oil go up? Thoughts, anyone?

References

[Beckman, Robert]: Into the Upwave, How to Prosper from Slump to Boom, Milestone Publications, 1988 4th ed.

Having said that, I must also say that I, to an extent, agree with both positions. While according to what is right and lawful, we should not have monopolistic agencies such the Federal Reserve Banks, the IMF, etc to bail out greedy undeserving nincompoops with stolen ( tax ) money, I am grateful that they create opportunities for perceptive observer to win back some of what has been taken, and perhaps a little more.

I speak with confidence from a youthful mind, but welcome any and all critisism, including some of the excellant ad homs bestowed on others. They amuse me.

Some people think that RSA is a third world country _

Well now - Im NOT a big nelson mandela fan - BUT at

least he doesnt go around flashing his whatsis. You

guys MUST be joking - Our politicians are about as

stupid as yours, but oddly enough they seem to have

a bit more class. Maybe its just my imagination. I had

never planned on LIKING these guys, but they DO have a

bit of gravitas.

Okies or anybody can buy the ADR in the USA - ask your

broker - dont know symbol as site I watch it on is stuffed.

I trade it directly on the JSE but it takes a little time

to set up that way.

To all

Harmony UP 5.5% today. DbnDeep up 3 % .

On futures basis ratio now 51.4 !! I like that.

Keep the faith !

Im no longer a US Citizen - I'm officially an

Australian But I only tell people this

if they are winning at cricket. Its very touch and go

between the Aussies now and guess who ( the third

world South Africans ) who if they should BEAT the

Aussies IN australia would be like me beating up on

real deal holyfield in South Central LA ( if you get

my drift ) .

But FREE Speech is the WAY - no doubt about that

But frankly I think Karlita was leading you down the

old garden path, LGB. IF you recall, K's message was

that since asian currencies were collapsing, they

couldnt afford to buy gold and would not do so. Now

you and I know that gold performs BEST in countries

with WEAK currencies - and WORST in countries where

people have faith in their currencies. This is axiomatic.

So I think that DESPITE how sort of professional K

SOUNDED, K really was bullsh!tting all of us. In

coming to K's defense ( like the true gent I know you

are ) , you went a little overboard and bought the crap

that K was selling ( im sure against your better

judgment ) - But WE ALL make mistakes - God knows Ive

made a few - but lets not go into that.

If you check back on his earlier companies, you will find that his record is pretty dismal. He totaly screwed up Clairtone despite many subsidies from N.S. IMO he just lucked into the Nevada properties. Regardless, ABX

is a very strong au co. that will make a ton of money in the next few years. Now that Munk has made a huge bet on real estate & decreased his interest in ABX, I look for real estate to tank & au to take off.

For Dave in Co

I apologize to you on LGB's behalf. I feel very bad

about the stupid things that he said to you. I hope you

will recover soon. Please forgive him. Im sure he didn't

mean it.

Gold looks good - Look at the magnificent triangle

forming in yen- gold. A break above 37500 is what we

want and I think the chance of an upside breakout is

MUCH higher than downside, if you look at the overall

formation which is inverse h& s. Similar story in euro

currencies - fast up move possibilities. And the

ratio with silver - we want a clear break above 51 !!

Of course Ive been wrong a lot before - but who

knows.

to the Preacher Man.

I can think of no other way to deal with you other

than insult you. I am not interested in anything that

you have to say, or what you may think. I feel

relieved that you will buy Canadian golds rather than

RSA golds because I dont think you deserve to make any

money. Buy some echo bay please - morgage your HOUSE.

If you think my statements were contradictory , you

are simply are too thick to understand what I said. So

why not just ignore one another - I dont want to waste

time with you. Please NEVER read my posts. A threshhold

level of intelligence is required sometimes. You dont

qualify.

To LGB

I think you are a great example of something or

other - Im not sure what exactly. But I think you

deserve further study.

PS

You may recall sportsfans - I said a while back that

I would not trust Munk on that share buyback deal.

Seems someone else agrees with me - You like ABX -

You can have it.

TORONTO, Jan. 15 /CNW- PRN/ - Kinross Gold Corporation ( TSE- K; NYSE- KGC ) announces that during the month of January, Kinross repurchased spot deferred contracts, fixed forward sales contracts and put options representing 155,000 ounces of gold. These transactions generated approximately US$14.4 million of cash ( in addition to the approximately US$22.5 million announced in December ) which will be realized into income over the original delivery schedule of the various contracts. During December and January, Kinross also established some floor protection by purchasing put options for 80,400 ounces of gold at an average strike price of US$283 per ounce for delivery in 1998 at a cost of approximately US$750,000. As a result of the hedging transactions in December and January, Kinross' total gold hedge position currently consists of the recently purchased 1998 put options for 80,400 ounces at an average strike price of US$283 per ounce plus a total of 50,400 ounces of calls sold previously for the years 1998 to 2001 at strike prices ranging from US$383 to US$400 per ounce.

I own Some KGC & think they are very well positioned as a low cost producer.

Frank Veneroso just had another conference - - have you seen any transcripts of that one? His Gold newsletter costs $8,000/year and his Gold Book Annual is about $300/year.

What an intellect - What a PRO found knowledge of economics -

what LEGS . That tolerant that spud and that davein co - what

dogs they were. No way to treat a lady - - -

And by the way - little grasshopper - whats a vicous

anyway.

You got a date with me in court old buddy. The charge

against you is excessive loonytuneism - Thats all I need -

Revelations.

Glad Karlita found her niche. But I miss her in a

funny way - nice legs hey.

To all

This is kind of like going to a really nice pub. I

can have a vodka now and then, have interesting

conversations, get in arguments, reminisce ( ) - its

great - But we need MORE GIRLS.

Gold is Ok - its moving up in the ratio with silver.

The fibonacci bottom at 47 is in place - Any guys

playing smartypants shortgold/longsilver or plats

are gonna get toasted. They better start UNwinding.

The ratio could go to 65 faster than they realize.

Also we should talk about movies more - I like

movies a lot - especially old ones.

Anybody heard from Ziva the magnificent There

seems to be a life outside Kitco at least in a few

cases.

A horrible thought - earlier I posted that

harmony was undervalued 48 times versus Barrick

and should go to 100$ - but hold it - I can still be

right and ABX goto $0.35 instead. Think about it.

JTF: A Freudian slip? Are you thinking about your golf game, or is the POG ( price of GOLF ) about to go down?

I think we must still expect downturns whenever a place turns up for paper money to go - - such as the apparent new interest in SEAsia. Also, as we learned directly from Mike Sheller yesterday, Wayne Angell actually said that gold suppression is a convienient way to discourage the flight to safety if the Fed sees a problem witht the markets, the dollar, or inflation. Also we heard yesterday that he said that the gold market is much thinner than the oil market, so problems with rising oil prices can be countered by pushing gold down.

Therefore, we can't expect a gold rally until the Fed is no longer interested in pushing it down - - for whatever reason. Sure is hard to invest in a political football isn't it?

But on the other hand - - when gold finally does rally - - better not stand in the way!

http://www.usagold.com

It is rumored that a consortium of gold buyers intends to take physical delivery @ March contract. First notice is Jan 30th when they are required to declare their intentions.

This fits very well with the end of Ramadan ( Moslem holy month ) and interestingly, with the gold trend forecast of Rebecca Nolan, which shows a bottom @ Jan 28- 29, followed by a runup into March.

Could be a case of 'out of the frying pan...'?

There are so many points to make on the China subject that I won't belabor this forum. Suffice it to say, the U.S. and the remainder of the G- 7 must continue to engage the PRC every step of the way in every aspect of their existence, until they achieve much better economic and political stability. I believe this will be a major point of discussion at the upcoming G- 7 conference.

Back to the PM's.

I have friends from all over China and they all report the same thing. However, the tensions seem to be particularly high in Guangzhou City, in the southeast. This is also the wealthiest area in China, and least under the thumb of Beijing ( with the possible exception of the Xinjiang province ) .

I think that it is really frightening when so many young, intelligent people enthusiastically support a war in the region. If these people can be duped, just imagine how easy it would be to galvanize the proles.

I get the impression that China is just biding its time, waiting for a destabilization in the West before it tries to take Taiwan by force. Y2K fits the bill nicely, as China will be let off comparatively leniently than the rest of the world.

Jack goes to the doctor and says Doc I'm having trouble getting my

penis erect, can you help me?

After a complete examination the doctor tells Jack, Well the problem

with you is that the muscles around the base of your penis are damaged.

There's really nothing I can do for you except if you're willing to try

an experimental treatment.

Jack asks sadly, What is this treatment?

Well, the doctor explains, what we would do is take the muscles from

the trunk of a baby elephant and implant them in your penis. Jack

thinks about it silently then says, Well the thought of going through

life without ever having sex again is too much, let's go for it.

A few weeks after the operation Jack was given the green light to use

his improved equipment. He planned a romantic evening for his girlfriend

and took her to one of the nicest restaurants in the city. In the

middle of dinner he felt a stirring between his legs that continued to

the point of being painful. To release the pressure Jack unzipped his

fly. His penis immediately sprung from his pants, went to the top of the

table, grabbed a roll and then returned to his pants.

His girl friend was stunned at first but then said with a sly smile,

That was incredible! Can you do it again? Jack replied with his eyes

watering, Well, I guess so, but I don't think I can fit another roll in

my ass.

and one more for the road before night, night...

THERE WERE TWO NUNS IN FRANCE WHO WERE RIDING THEIR BIKES DOWN A COUNTRY

ROAD.

THE ONE NUN TURNS TO THE OTHER AND SAYS, I HAVE NEVER COME THIS WAY

BEFORE. THE

OTHER NUN SAYS IN RESPONSE, I THINK ITS THE COBBLESTONES.

go gold.

away... ( zzzzzz )

Éß

One share of Harmony represents 6 times as much gold

as one share of Barrick. Barrick sells for 8 times as

much as Harmony - Thus - harmony should sell for 48

times what it sells for - $ 100 a share. I can live with

that.

But DONT buy it - I want it ALL.

The REAL bernatz use to get it from the WIZARDS. This guy

gets it from his armpit - stand back !

Please stop spreading rumours that I am bernatz, beernuts.!

Soemone asked Sharefin about this: I also subscribed and received this in my mail this morning. I think Ziva gave us this URL- Thank you Ziva!

To receive free daily Global Intelligence Updates

or Computer Security Alerts, sign up on the web at

http://www.stratfor.com/mail/, or send your name,

organization, position, mailing address, phone

number, and e- mail address to info@stratfor.com

John D- Morning to you! Missed out quite a bit of Kitco, but have seen some great posts from you on our beautiful RSA. Top form. Take care.

Hi RJ. You wrote:

Allow me to hold forth my own extraordinarily and completely humble

opinion on DINES.

He's a schmoe.

Feel free to quote me on that.

I'm afraid I have to agree with you on this one, RJ. I used to read Mr. Dines' newsletter back in 1980 when gold soared to $850 an ounce; and as the price continued to drop after that, Dines literally begged and pleaded with his readers to hold on, assuring them that the price would soon bolt to $1200 or more. Those who followed his advice, including my father, lost their proverbial shirts. I had assumed that Dines had gone bankrupt along with some of his readers, and that his newsletter had disappeared. So I was surprised to discover that many goldbugs still consider him a reliable analyst.

In fairness, even the best analysts can be badly wrong at times; and for all I know, perhaps Dines has made some good calls of late. But there was something about the brash confidence he displayed as led his readers astray- - his refusal even to consider the possibility that in 1980 gold might be overpriced in the $700- $800 range- - that made it impossible for me ever to trust this man's judgment again.

- Tom

For Beernuts de hepslop

The TRUE Bernatz is WATCHING you. He is closer than

you THINK.

For Boris

I knew you would figure this out.

Good one !!

Harmony bought out Unisel - there is no unisel

Harmony has 49 mill shares out - makes about 1.5

ounces of gold a share. Barrick has 373 mill shares

out - makes 0.25 oz share. Barrick sells 16- 18$.

Harmony sells for 2 bucks.

So buy Barrick - I dont care - that leaves more

Harmony for me old chap.

All this is in my spread sheet - as all good sportsfans

know. Pegasus was wiped before issuing. Echo will be wiped

soon.

RJ wrote

Fred -

Remember, the reason gold producers sell forward is to lock in prices. I have read figures that

some producers are sold up to 80% five years forward. Doesn't matter what the price of gold

is today, they already sold it at a much higher price. They will be diggin' the stuff for years to

come. Those that did not lock in higher prices will fail if gold stays down here much longer ( I

don't think it will ) . They deserve to fail. They will be absorbed by the larger, more successful

producers who had the good sense to hedge their production. As Paul Harvey is wont to say,

Now you know the REST of the story.

RJ - I wonder if I could respectfully disagree. I'm not singling you out, because the consensus feeling is that these foward loans are all about locking in a price for gold. I don't think that's the case, even though the miners themselves say it and probably believe it. If these forward sales were about hedging, most, if not all the hedges would have been lifted by now. That's what a producer hedge is - you sell high ( way above your production cost ) and buy it back at or close to your production cost. That's what's so screwy about these forward sales, only a miniscule amount has been covered, and we're at the lowest price in decades. Instead, you can count on one hand, the announcements of forward sale closeouts, and the least little rally supposedly still brings Aussie sales. Besides, if these forward sales really did function as hedges where are all the locked in profits and why does the universe of mining co share prices look like Dresdner after the fire- bombing. Don't you find it odd that companies announcing fantastically high lock in prices never seem to announce fantastically high profits?

No, these forward sales are about something else - securing cheap money by agreeing to pay back the metal that's sold at the outset of the metal loan by the CB's. The problem is the mining companies have not thought thru the transaction as the CB's have not. If they both did they would see how stupid metal loans/forward sales really are. Just like the CB's will never get their metal back, the miners won't be able to pay it back - it's just not possible in either case because the currency that the transactions are denominated in ( metal ) is shrinking in circulation. It doesn't make a bit of difference if the price is high or low, the miners can't pay it back. In a low price environment, like now, they suffer. And in a high price environment, they'll discover, just like now, they won't be able to afford to buy back their commitment, because it takes full cash on the barrelhead.

If these forward sales were true hedges, and not part of a fraudulent concoction ( metal loans ) , they would be closed out enmass at these prices. And if one were to argue that the miners haven't covered because they're expecting significantly lower prices, I would suggest they should think of mining something else. The sad fact is that the miners, like the CB's, are locked into transactions with no escape. Don't mean to hit and run, but it's late here on the East Coast.

I think you need a vacation - - Visit RSA Now -

Put all this behind you. Fax jdisney@mweb.co.za

All the way

With Echo Bay

..... To the poor house

For Ray and Mike Stewart

Got a long report on Harmony

Dont forget they also have the Unisel Mine

They have 68 million oz of reserves

They say their restructuring will reduce costs

to 250$/oz

They have a disaster mode to enable indefinite

operation at 50% capacity at 200$/oz.

My spread sheet has their cost at 348. Maybe

when I get their results it can be revised

downwards.

I have echo at an astounding $832/oz - If

people insist on buying echo rather than a

mine with more reserves that Barrick selling

at one- eighth its price, they SHOULD go broke.

Experience is the best teacher.

For Ziva the magnificent- what are you trying

to tell me

For the Fake Preacher -

Are you still in town get the tar and feathers.

To ROR - Well you see, Virginia lost the

Civil War ( after all we were the ones that

fought it ) and 120 years later, I got p!ssed

off about that and left the country. Also, I

really believe that the spread of US culture

and influence is deadly. Ie - rap music, sit-

coms, meaningful tv like la law, interpreting'

the news, US journalism, fast food, political

correctness, human rights lawyers, rewriting

history, Spielberg's childish pablum ( try the

holacaust WITHOUT Fiennes and Neesom ( on a roll ) -

boring- boring ) , beavis and butthead . Its about

TIME, and trying to stay a little bit ahead of

the rot.

Do you realize that I lived here for 9 years

for NOTHING - Present assets in this country are

worth more than the money that I brought in 9

years ago ( when timid pipsqueaks were advising

me that RSA was politically unstable and it

wouldnt be prudent to move there ) AND I never

brought in any more money over the 9 year period.

Thank God for these pipsqueaks - they provide

OPPORTUNITY. Think about it.

Hi Ziva. You wrote: My husband is returning from his 'business trip' with his secretary tonight, and am I preparing a surprise for him....

Though it perhaps has nothing to do with gold, this surely is of general interest. You will let us know what happens, won't you?

- Tom