Disclaimer: I have no connection whatever with Alcor. None. Zip. Nada.

away...to light the oak ( red )

ÉßßQïn

go gold...

http://www.geocities.com/Paris/3294/

I would suggest that the Swiss are not going to sell gold:

http://soilandhealth.org/03sovereigntylibrary/0301investlibrary/030101jml/030103jmlbkch1.html

If you want, or indeed have to, obtain something - what do you do?

In the case of gold and the Euro - create a market that is cheap, and buy. When the Euro comes into being, it is then backed by what you then have - GOLD.

One reason that the SA stocks have fallen so much in the past year is the slide of the rand, which numerically decreases the value of such stocks in dollars. As gold went down, the rand followed. When this reverses, when the dollar tanks, and as gold goes up, the rand will appreciate and SA stocks will appreciate by a multiple of NA stocks. The last major gold recovery 1993 is a great example.

By the way, I like to buy stocks which are near their lows. Just because a stock has already fallen certainly doesn't make it a bad investment at this price. All other things being equal, I consider it a better buy.

Since the beginning of the year ASA has walked off and left other gold funds, and happens to be 95% SA stocks.

I think TZADEAK's political ideology is getting in the way. Somehow I believe the guy who lives there.

http://www.eaglewing.com/compare.htm

Check the 3 week column.

And - - I am not optimistic that any future presidents we might have available in the wings will change anything about the process. If the changes in government control were sudden, the American people would rise up and correct the problem. But if the process is very slow - - it is like slow cooking the frog - - the frog does not know any better and is not able to jump out before it is too late.

Lets hope we are wrong. Here's to the future, and survival of the Human spirit.

Interest in gold is soaring. Check out the chats, gold is a part of every conversation.

If Clinton goes down, and it looks like he will a $9.00 jump might prove small. Couple that with the Mid East situation, and the plot thickens.

Smart money likes these odds for a quick buck , couple this with a suspected short sgueeze, a dollar that is sure to come down more, and you have all the makings of one heck of a good play.

In my humble opion anyway, take this and a dollar and get a cup of coffee most any place.

Haggis, you better take it easy, us americans might all be in bread lines . Then think of how lonely your gonna be.

This is no small matter of thought to ponder.

However I think the answer is in those famous papers from those wacky kids a couple of hundred years and change ago. Something like, I am no scholar, like I have to tell you that, but;

We the People are supposed to rebel against tyranny, if that tyranny is the scythe of an elected government gone awry and hangs over the neck of the We the People, so be it, the government must be given back to the We the People folks.

The vote, the Constitutional laws should address all these thoughts prior to any act of violence, that is my, me, personal opinion, on an intellectual level from a monkey that fell from the tree and now walks upright, okay, I try.

Given that the government becomes oppressive;

I will run into the open and draw their fire, so that you might draw the sights of your weapons on them and kill the bastards.

Yeah, I am comfortable with that.

I sense the every man for himself mentality in this post - - and China may still be months from a devaluation. There must be something else. Perhaps BC's future is known among highlevel circles in Europe, or perhaps the EURO is not looking good at all.

We are mushrooms aren't we - - and it is not just gold this time, I think.

I would have said that I was concerned about bailing out SEAsia regardless of the real reason for the meeting. The post you got sounds like unreasoned panic - - if it is truly how the German CB is behaving.

Thanx!

Can we clone you and scatter your clones over the USA? Would be excellent revival ( survival? ) therapy! We need a kick in the seat of our pants to get going in the right direction again.

1 ) Continued financail crises all over the world, with mounting derivatives losses. Spread of crises to Europe and South America likely.

2 ) Monicagate - - bearish for dollar, bullish for gold

3 ) IMF financial panic in Congress. The Democrats are calling wolf, causing panic about impending doom from an imploding SEAsia if the IMF bailout is not funded. Only 18 billion needed? Little do they realize that by calling attention to the SEAsian crisis they will hasten the bear market that they fear.

4 ) Failure of IMF to turn around a single SEAsian country after about 100 billion infused. What will the 18 billion from item 3 above accomplish?

Reasons for US Equities market to go up:

1 ) Higher profits for companies with cheap overseas factories in SEAsia ( if the factories still operate )

2 ) Flight to safety due to more falling currency dominoes. ( Only if Monica gate fails to materialize ) .

3 ) Baby Boomer euphoria ( Many may not have learned about SEAsia, but all have learned about Monicagate. Impeachment the topic of the last three days ) .

4 ) Please add any other reasons for a market bull.

Last week The Telegraph Newspaer in the UK contained an article concerning Germany hoarding gold, in case the Euro failed. Then another article stated that France and Italy were also hoarding gold.

Given that the Brits have, at his time, not joined in the Euro party, are they too hoarding gold - yes I think.

Stories abound that the Euro will flop and be a weak currency. Will it be backed by the US Dollar and/or gold.

Why on earth would the Europeans want the mainstay backing to be the US Dollar ? Given what Wall Street has done to the Asian currencies, why woul the Europeans want a repeat performance in the future?!

Gold, Gold, Gold .......... after all, you can always get counterfiet US Dollars from Russia !!

I suppose if the US Dollar asked the Euro nicely, some support would be forthcoming. We must always look after our American cousins, and our Special Relationsh

Correct, a 3% rise is nothing in itself, but if it initiates a trend, then, at last, the world has come to its financial senses. Please do not shoot the messenger, which I consider Kitco to be.

Some time ago I said that a South American country had sold all of its gold - - I think it was Argentina, and not Brazil. If Ft Knox has more gold, that should be public knowledge in a month, as the Fed is supposed to report gold holdings. Now - - if they just forgot to record the transaction for several months - - - ?

Sounds like Argentina is history.

Can you tell us more about Don Wolanchuck? Sounds like an interesting fellow.

Although as I stated to Tolerant1 before, I would generally caution against putting a lot of money into items which have large premiums to bullion, I also believe in some diversification in case the opposite scenario ( inflation ) rears its ugly head. We all know what would happen to collector coins in that case.

With the recent demise of silver and gold, it appears to me that coin collecting may also be near a major low - it which case it may make sense to buy some items which would appreciate if the public buying interest returns in a big way.

In the Morgan dollar area, my take is that Carson City Mint items ( as a group ) might be an area where scarcity of mint production relative to other mints would provide a base for better appreciation.

Last time you were here, gold was DOWN !

Yer back, and gold is UP !

However, you STILL carry the same message. We can only conclude that irrespective of the gold price......your message is the same....you is you ! Doom and gloom ?!

Why don't you change the focus of your life. Take up nature rambles, paying particular attention to rare and endangered species. Get some mental stimulation by identifying those closest to extinction. This will form a substitute for GOLD, because Mate, it is NOT near extinction.

While you are at it - test your reflexes, and get into a bag with a rabid ferret !?

Have a nice day..........

Aye, Haggis

I wonder - - will the press will ever forgive him for admitting his affair with Jennifer Flowers, as his initial denial of same was so convincing that he was able to survive that crisis while he was still governor of Arkansas, regain his momentum before his first election, and get elected. His maneuvers were incredible. Gary Hart in the same situation was toast.

All: sorry about my errors in my 19:21 post. follow was actually folly, and what I meant to say was that if BC is unable to rapidly suppress Monicagate, the dollar and the equity markets will do poorly and gold/gold stocks will do very well.

http://www.intersurf.com/~vor/gold.html

GO GOLD!......er - silver!

That might even be better than the Gold- for- Oil story.

But it would perhaps explain why certain EU countries have been buying bonds, while the Japanese have been selling.....

Studio R., I don’t think vronsky has seen my posts. In any case he won’t be banished. But Ted might.

To Steve- Perth: We are trying to create a discussion group devoid of promotional content within the postings. Thanks for your help. We may start a structured advertising program here but not for few months at least. If anyone is interested, let me know. - bkitner@kitco.com

Lawyer- - that while she admits to performing oral sex on President Clinton- - - SHE DID NOT SWALLOW!

On the subject of pre- 1933 gold coins - there are perhaps some deflationary scenarios where the high- end coins, which command large premiums over bullion, would not hold those premiums.

St.Gaudens ( MS- 64 or lower ) and Liberty ( MS- 63 and lower ) $20 should be a safe bet for the mix. Certified coins are a plus because of their liquidity, with no question of grading.

Silver dollars tend to trade for a pretty steep premium over bullion. You can ( I think ) still buy Morgan or Peace ( well- circulated ) silver dollars in the range of $6.25 to $7 if you hunt for them.

On a historical basis, uncirculated silver dollars are still pretty cheap, especially in grades of MS- 63 and below. I particularly like the Carson City Mint Morgans as a silver investment; they are still trading for 1970's prices and have been 8 to 10 times as expensive in the past.

If you need sources, email me at Silverdolr@webtv.net

P.S. ( TO ALL ) I very much appreciate the EXCELLENT analysis presented here today ( and always ) . I have completely stopped reading/watching any mainstream media sources; I get more accurate and unfiltered information here.

@capebretonthinktank.com

All the great minds ( what's left of them ) were gathered together today... ( via Live video- conferencing ) .... ( complete with EB's ( very old ) Turkish hash- pipe ( with 3500 mile tubing for coast- to- coast relaxation techniques ) ....hence lgb's reference to the great sucking sound heard all across the country ( US ) . And those great minds spent the morning pouring over tha latest data, led by the Founder 'Ted of the Cape', and trusty side kick EB. Great gold minds ( not mines, Haggis ) such as Irvine- Boy and the Hep were invited to join in...they declined the invite for fear of being overwhelmed at the magnitude of sagacious thought ( and Bombasting ) and coughing.....er...... ( cough, cough ) . Ted and EB concluded a number of things, the first was to clean the bong, eh Ted? Damn lungs are killing me... Of these ( other ) great things being studied was the great double bottom. Ted and I argued and cussed and pissed and moaned ( and coughed ) for hours and came to the conclusion that it is NOT a double bottom ( I think, I must refer to my notes, for they were copious ) . We agree to disagree that it was possibly forming a reverse head and shoulders, but we need a few weeks ( or even days ) to confirm. After our ( cyber ) lunch of ( cyber ) Sheller Beans, Oris ( that was real ) vodka, and Disneys' ( something or other ) , and our mid afternoon 'session' we got back to work. The next ten minutes were quite tedious and we had to settle into some ESPN Sportscenter to bring us back to our 'centers'. Once the centers were re- established, it was back to the charts ( cause they don't lie...eventually ) ....... ( whew! ) ...... ( sweat pouring ) ........With sweated armpits and minds realing from all the 'implications' concluded ( not making sense now ) , we finally did decide that it was back to ole turkish- bong for us ( more Great sucking sounds across US ) . By the time we were finished with this 'tank' we were definitely 'tanked'.......and we decided nothing. So it just goes to show you....even the greats are wrong...

...who will be right...

I would like to add that these next few months will be very exciting times for ole goldy, eh? And the charts will have told us which way to go ( make no mistakes about it ) . Hindsight will be cruel to some and delicious to others....but remember this, it is always 20/20...

...¡OhM¥!

aWaY

Éßvidiot

Consider a large population vacationing on an island where a volcano is about to erupt and two of the three airlines go out of service. The individuals will spend what ever is required to get a seat on the remaining airline and they will care nothing about what class they are in or service they receive. In this scenario, THE GOAL IS TO PRESERVE YOUR LIFE. IMO in the current financial climate the focus is moving from appreciation to preservation. THE GOAL IS TO PRESERVE YOUR WEALTH. With this said, we can launch into a story based as an analogy.

FLIGHT FOR LIFE

Today, many of the world’s financial lives reside on the wealthy Island De Conventional Investments. A key contributor to the island’s wealth has been the variety of vehicles for getting people to this wealthy destination. This island, only accessible by air, has several huge 300 seat/plane airlines such as Worldwide Equities Express, Currency Internationale, US Bond Airways and Asia- Pacific to name a few. The island also has some smaller, but long standing carriers such as the very small, 10 passenger/plane, history rich airline – Golden Skies ( GS ) . The airline is currently referred to as Barbaric Relic Express, because of its no- frills service. The service and amenities ( total return ) of the big airlines are the choice of the island’s population, leaving very little interest in Golden Skies. After all, these airlines brought them to this wealthy island in the first place, why change?

However, as is the rule in this world changes are in the wind. The island is in danger of total ruin from natural forces of over capacity, depression and changing materialistic values. The island’s population is seeking alternative destinations to weather this natural financial crisis. The vehicles to these destinations are beginning to encounter their own set of problems. Asia- Pacific just went belly up and confidence in the safety of Worldwide Equities Express has been plagued by recent crashes and service problems. Most of the Island’s population are now purchasing tickets on US Bond Airways because they see it as a safe haven for preservation of their financial lives. But additional worries may be mounting. What if US Bond Airways can not deliver on this safe haven promise? What vehicle will deliver the numerous financial lives to a safe destination? There are the smaller airlines and in particular the no frills Golden Skies. While GS doesn’t offer all of the amenities, they do have a strong historic reputation for just getting people off the island to an alternative destination of preserved purchasing power. And, even if some doubt this legacy, people are beginning to believe that at a minimum a ticket on Golden Skies will offer a contingency. Some ponder: what if all of the other airlines terminate service? After all fleeing the Island De Conventional Investments safely and preserving ones financial life is the key. There is no loyalty to the vehicle that originally brought people to the island. However, there is a problem with Golden Skies, they have a drastically smaller number of seats than the other airlines. GS’ total capacity just could not begin to deliver the large volume of people to their destination in a timely manner. Therefore the mass of people desiring evacuation will be in a bidding war for the few seats that are available. However, this is a small price to pay for some; for the alternative is death of one’s wealth. Those who purchase some tickets before the rush with even part of their present wealth may later consider themselves very fortunate. Those that do nothing may suffer or at worst loose their financial lives. The average sales price for a seat on Golden Skies reaches all time highs.

While this story is not unlike the “flight from paper” premises of many a gold bug. I believe there is a key underlying difference in our current situation. While I am not an economist and don’t have the numbers at hand, I would venture an intellectual guess that there has never been in the history of this planet a scenario where so much wealth ( or perceived paper wealth ) has been created. This wealth is largely focused when you consider the entire population and it has been accumulated in a short period of time. These people are going to fight for their financial lives – count on it. And if for any reason the legs of the investment table begin to buckle and gold becomes viewed as a healthy alternative, the results may be unprecedented. Gold has a legacy of being a monetary metal and a barometer for overall economic status. Inflation rises – gold rises, dollar falls – gold rises, etc. We all know the traditional correlation. And of course there are the conventional supply- demand side of gold for jewelry, etc. However, even in a deflation, when gold should be falling, the price of the metal could very well sky rocket. Why? Because the unprecedented number of potential buyers. IMO this potential wealth preservation demand of gold has never been this huge. If confidence is lost in the paper markets via currency collapse or other factors and gold begins to rise. People will want to go to that “destination”. If even a percentage of the huge paper goes into gold, the metal may go off the map. The “barbaric” metal could find itself a beneficiary of the same speculative dynamics that have created this current worldwide economic situation. There simply is not enough capacity in this golden vehicle. Suddenly the supply- demand profile created by the desire for wealth preservation will outweigh the other fundamental dynamics traditional credited for the metal’s price movement. People generally want to go where the grass either looks greener or indeed is greener. The stakes for those in the conventional investment community are huge. This is the obvious reason why for as long as possible those that have the means will keep the grass on the golden hill brown. The media’s response from the recent gains in gold are consistent with this behavior. Across the board the networks are effectively saying “pay no attention to the man behind the curtain, the great Oz has spoken!” If the traditional vehicles for wealth creation stall, where can people go to preserve their wealth? While I am certain there are other alternatives such as tangibles, real- estate, natural resources, and agriculture, I believe gold will be the leading contender. Gold’s value as simply insurance IMO has never been higher. Preserve your wealth or lose it, what other choice does one have? Do you have your ticket off the island?

I'm glad you enjoyed the screening of Wag the Dog. Good to see you laugh but, to borrow a line from the film, The fit has hit the shan. Goddamned movie castrates us. It takes most of our best options and makes a mockery of them. The whole war scenario is out. Even if Saddam Husien bombed New York with anthrax, any response on our part is certain to be viewed as nothing but a diversion. No, we need to circle the wagons and get creative.

The FBI has……..The Girl…… Jeeeze, they even took her diary and computer! Is there anything else I need to know, Bill? She cut a deal with Starr today to squeal like a goat and is surely bleating out your downfall as you read this. They got her locked up tighter than Fankie Pantangeles and there is just no way to get at her. I haven't found a way in yet, but I got the IRS out in LA all over her Dad; maybe we can get some leverage there. Listen, Bubba: Did you call this little chippie over Christmas? What the hell were you thinking man, how many smoking guns are there?

Johnny Cochran, Robert Bork, and I spent the night in a fog of cigarette smoke and bad coffee breath. This is a crack team and you would be proud of some of our more Machiavellian constructs, but I gotta admit, it was Rocco who came up with the winner. The great thing about his idea is that we can leave the snipers at home, don't need 'em. I think we ought buy Rocco a ship or a jet or an island or some damn thing, the guy is an animal, and he is as loyal as a dog. He would die for me.

It is beginning to look like there is only one way out of this thing: We blame it on Hillary. Stay with me here, this is good. There is an old adage in politics that best describes a commanding lead in the polls: The only thing that would keep this guy from being elected is if he were found in bed with a dead girl, or a live boy. Lets run with this line of reasoning a bit. Thank God this whole thing is about a girl and not a boy, and she is still breathing so we are way ahead on that point.

Here's the plan: We admit everything. Yes, The Girl visited the White House at hours that are impossible to explain. Yes, The Girl received many gifts from the White House. Yes, The Girl made calls to, and received calls from the White House. It is simply impossible to get away from these facts. So we cop to them all. Yep….. we admit to all of it. Call a press conference to confirm all their suspicions. I wish I could be there to see their faces, the White House press core has seen it all, but they've never seen this. This will knock them on their collective asses.

The Girl was not calling you, but she was calling. The Girl received gifts from the White House, but they were not from you. The Girl visited the White House at all hours, but was not visiting you. She was there to see……….Hillary…….. Heeee Heeee…….. Isn't this great? Damn right there was an affair, but it was your wife who had it! I've already spoken to Janet Reno who will admit to an ongoing affair with Hillary. The IRS pressure on The Girl's Dad will get him to confirm a certain sexually ambiguity about his Daughter.

Don't worry about Hillary, Rocco spent some time with her last night and she seems in a mood to cooperate. All you have to do is that puppy dog misty eye thing you do, and be the victim husband. This will fly. You'll see………

OK

RJ

PS

Got a signed and undated letter of resignation from Vern Jordon, so we can move him out whenever we want. This is getting fun……………

Gearing means that the earnings and thus the price of the

stock is very sensitive to the price of gold. For example

a mine with a HIGH cost is more highly geared that a low

cost mine - Why = earnings ( and price of stock ) are a direct

function of Revenue minus cost. Take a mine with a 100 $ cost

per oz and raise the gold price from 300 to 350 - earnings

go up 250/200 or 25 per cent. Now take a geared mine with

a cost of 275 and do the same thing. Earnings go up from

25$ to 75 $/per oz - ie 3 times !!!!! thats the reason

DDeep will do a lot better tha abx in a strong gold market.

Second reason - if a mines has its gold sold forward

for several years then it will be insensitive to a rise/or

a fall in the gold price - An unhegded mine's revenue varies

directly with the gold price so its is more geared -

thats a second reason for DDeep attractiveness - It is

mostly unhedged - I hope that is clear

away

Éßshuckin& jivin

away...to call my farming friends

Éß

away...to pay tribute to a great Californian

Éß

Ted, can I come to the cocktail party? It looks like a good guest list. Plenty to talk about and eat I imagine ( I'll be wearing kevlar boxers when talking to Jeffrey ) . I'll bring the 'twister' game....you supply the oil. StudioR can play guitar and bang the coconut bongos.....oh my. Ole Jack Baby and I can share 'conquests'.....he probably beats me hands down. That lady- killer... What should I bring

away...to stock up on party favors

Éß

go gold...go Elway...

Nothing endures but change

Heraclitus

away...to change the CD

Éßmightaswellbewalkingonthesun

and Haggy- Baby....I am sorry for being so UScentric, but....well, who do you think moves these markets anyway Kalgooooooooooooorie!?AYE?!? uh uh...

away...to my agendas for today

Éßmowinglawnsnadcleaningbathrooms

Ted....you have the under, I have the over....let us meet in the middle and swill RUM like their is no more booze on this earth......yuk, yuk. And pass the peace pipe...aaaaaaaaaaaaaaaaah.... ( puff ) , ( puff ) ........mmmmmmmmmmmmmmmgood.

go gold...

away...to find help....this ( ugh ) boot is lodged deep in my throat

Éßootedup

I am pulling my 'ugh' boot out of my mouth......whoops...

Now......RJ AND HEP are bullish on gold. Well....hmmmmmm. I'll still sell this rally and go long the same time...perhaps.

away...to knock some sense into my pee- brain

Éß

thanks ted...ya ole northerner

Thomas Jefferson, Franklin D. Roosevelt, Dwight D. Eisenhower, Lyndon Johnson, Grover Cleveland, Warren G. Harding, John F. Kennedy, Bill Clinton.......and I am sure countless others...

have in common?

well...they ALL had Zipper problems.......ALL OF THEM.

This infidelity thing, while I do not condone it, is something that has gone on for.......well, for EVER. It certainly is not right but it is NOT an Impeachable offense. Was there EVER any talk of Impeaching ole 'Jack' Kennedy!? Heaven Forbid....... now, let us focus on GOLD and lovely Platinum and Silver, etc...EH? Right Barty- Boy

Away

Éß

Please refrain from putting words into peoples mouths...

Mr Irvine- Boy..... would you care to comment regarding the trading at your office yesterday ( Friday ) !? Some here are getting a little.....how do you say it........out- o- control.

I must admit that this was a good move and there is a chance for the 'bottom' to be in. Who knows, I will use options to sell AND buy this market........uh huh. Can the bulls sustain the attacks that will surely come next week!? Can the bears stop the bleeding from the latest bull 'goring'!? Hmmmmmmmmmmm.....Tick- Tock, Tick- Tock... the Gold- Bull ran up the clock...

away...to poorboys house for a lesson in AWAYness

Éßputtinonshadescauseitsgettinbright...ohmy

hey Ted- baby....lovin the Code+Rum

JOHN DISNEY: For no good reason? Hey, the planets are GOOD. Just gotta know how to read 'em. Bettern' my beans. Thanks for the backup.

good reason . Yes the golds were all up but 30% in ONE day

for one stock was out of line.

Im a believer - tell me all about it LGB you unbelieving

peasant _ did your buddy great economist ( my you know what )

Karlita call it or call ANTHING - he/she/it is gone like

the morning dew in the full sun and heat of GOLD. Gold the quarry

of men like Cortez, Pisarro, the Buccaneers. Can you see K in

that company - he'd be lunch - right Oris.

I don't think BC is as unstable as Nixon was, so we don't have to worry about that red button - - but on the other hand I have never seen him helpless on the defensive before. He could very well pick a fight with Saddam to get the minds of the public off his problems.

Trouble ahead, I think.

http://www.intersurf.com/~vor/crude.html

I don't wish this kind of crisis to occur in our country, but I do believe that the web of lies could not go on indefinitely. This unraveling of the web will be a strong bearish force on the markets, and a strong bullish force on gold.

I would not want to be a gold bear with a crisis in the White House. Apologises, Bart Kitner - - I'm really trying to focus on gold discussion only!

Hope the gurus watching SEAsia are correct. What worries me is that there is no evidence that the G7 ( though the IMF ) have done anything constructive in SE Asia - so far - and they seem to have run out of cash. My personal impression is that there must be an Asian solution of some kind, not one engineered by the G7. Perhaps SDRer can shed some light on this.

Have you read the book I forgot the Authors name but its

very nice. In view your Latin connections Im sure you'd

like it.

Ill never be able to get that little extra package of

seasoning for the r& b. Can you give me an idea of the

spices that comprise it. RSA is long on Indian type

kitchen - curries and the indian style r& b

Ah, but brothers vronsky and bart of the house of metal must come to agreement, for all here will benefit. One the provider of a stage, and one a provider of actors. Alas, STUDIO_R I must turn up the bottle of golden tequila and quench a thirst brought about by brooding on such a subject.

I can only hope for the best as any goldist must strive to do.

Get Camdesuss!!!

I would suggest Vaal Reefs and cancel her subcription to

all newspaper and sell her TV set. Read books, go to movies,

garden, take walks, develope an interest in cricket. Enjoy

a better life.

Also leave the room at the mention of the dreaded name

Zaddeek the misspeller.

The Beruit accord that you refer to _ is this hypothetical

presumed or REal can you expand a bit?

I have difficulty with your para one and two - maybe im

misreading

Para 1 seems to says that the oil price is fixed in terms

of oz of gold per bbl of oil - But para 2 implies that if demand

goes down - the supliers must get the same amount of gold

even IF offtake FALLS.

Wait a minute - I cant believe that is what you are

saying.

1. set the price of oil in terms of GOLD = 0.66 oz of gold

for a bbl of arab light ex Ras tanura ( for example ) . Thats

easy .

2. but providing a fixed amout of gold regardless of offtake

in almost impossible - That means the price of oil in gold

must go UP if offtake falls. The converse is the real

problem - unlimited offtake and the price of oil falls in gold

terms as offtake is increased. NO - never fly. Saudis wont go

for that - this is a replay of the 1970s when they clamped the

oil off - I was there.

I can believe ( 1 ) but big oil cos take oil to various

affiliates and are paid $$ for ultimate tranfer to Saudis

after their cut ( for supply and downstream ) - Then Saudis

take money to Banks and buy gold - is that mechanism ?

Sorry to appear stupid. Please expand. Im very interested.

Sam is right - watch out for double agents AND double

books !! Dont forget that - Did I say try a little mustard

and balsamic vinegar ( just a touch ) in the taboulli ( burp )

For the so called Preacher

I just remembered you saying some cheap shot about a third

world Country - Wow - you with a president that cant keep his

willie covered and One impeached president already Are you

joking - and you getting ready for another war to quieten

down the citizenry AND after papering the world with your

DEBT. Are you serious Reread revelations - you may be

led by one of the main characters.

Some more comments - you noticed that the p/e ratios

of RSA golds other than DD ( like Harmony ) are good too

and asked why. There are more than harmony - Slime

reprocessing companies like east- dagga are paying a 29%

dividend. Buy it in an offshore trust and you and you

can have it tax free. Not bad.

The Kitco site is great - Read mozel and many others.

The good thing is that many of the people on the site

have realized that the US news media is a truly grand

instrument of deception, disinformation and

manipulation. Im NOT overstating. This carries over

into the British press with respected journals like the

FT and the Economist ( which I subscribe to for the

last 2 pages ) being among the worst. One exception,

the Spectator ( top stuff with great cartoons ) .

Who runs the deception who knows who cares Its

basically the really BIG dough - rockefeller rothschild

whoever.

One ( among many ) of their objectives is to neutralize

South Africa. Think about it. A country with roughly

15 per cent of the US population, and 50% more gold

production, and the bulk of the worlds pgm and

diamonds - you know most of the worlds traditional

goodies. Plus a fairly docile and cooperative Black

population ( vastly different from US Blacks - derived

mainly from the Africam west coast via the slave trade

and politically polarized to the point of hopelessness ) .

The big boys want RSA to themselves - THEY want this

market. So the press is paid to bad mouth it every

chance they get and apply Maximum negative spin. We

had many more reporters in George for the non- event

botha adjournment than demonstrators by far.

During the late 1980s period when I came here to

catch the bottom of the real estate market, the press

were PAYING for demonstrations and NECKLACINGS. Dont

believe it - okay by me.

This is the reason I react so fiercly to little

half smart Zaddeek - who only reads from the Press

about what goes on here - and fancies himself an

anal- yst even though he is numerical handicapped

and practically crippled in the spelling department.

He just perpetuates the mischievous objectives of the

big boys - not knowingly of course - he's just an

example of a tiny prawn - er pawn.

Even the local press plays the game. It suits

everyone's purpose.

Were you here when we had Karlita Now what was

that all about Who was it and why was it here

Zakkeek is simply a little Karlita clone in charge

of RSA. Try to bad mouth RSA till the US banks have

bought all the script. Ignore this kind of stuff.

In 1986, I was listening to the BBC late night news

lanquishing on my bed in Andorra and the late

news came on = the lady said WE have no reports of

violence in South Africa today - first item .

Get IT FIRST NEWS ITEM WAS NO NEWS - KINDA Strange

wouldnt you say - MEANS they spent the day looking for

something but came up empty. I jumped up and said EUREKA

- Its all bullsh!t. and called a travel agent in the

morning. One flight only from Madrid - and a tiny little

sign up so no one could see that the plane went to RSA.

Sanctions you know - RSA is EVIL. Crimes against humanity.

Dont believe ME - read up on the Angola War and

South Africa in the 70s, 80s, and 90s. Do lots of

homework but always remember whos doing the writing and

why. The Chester Crocker book is probably not too

bad but I think he was under a cloud. Bruce Spingsteen

and Sting and Streisand hadnt approved of his

contructive engagemnet policy.

Its up to you what you do. But you asked and I told

you. end of story

Ok now listening to barbara bonney singing Barbers

St Itas Vision - wall to wall goosebumps - what a

voice then the horseracing and counting my money -

Tomorrow More Cricket - so ill take the rest of the

day off and leave you to zadeeks mindless drivel.

We have to be on our toes these days, with the crosscurrents of inflation and deflation, and the imminent entry of the Independence into the Persian Gulf. Now Y Arafat wants 60% of the disputed property in the occupied territories.

First: Gold price as a means of maintaining the price of Oil. We must give ANOTHER credit for linking the price of gold to the price of Oil. Mike Sheller related to us comments by Wayne Angell, a former Fed governor who said that it was possible to counter the rising price of oil by pushing gold down, since the gold market was thinner than the oil market.

I have another question: Since the price of oil is dropping, shouldn't the price of gold be allowed to go back up?

Second: I am looking at Steve Peutz' article in the Jan 98 News and Views ( Centennial Precious Metals ) . He makes a strong argument that the IMF bailouts have only allowed certain debtors to roll over certain debts rather than addess fundamental issues. He argues fairly convincingly that the Mexico IMF investor bailout only encouraged investment money to flow into SE Asia, creating the investment bubble. He then quotes Marc Faber in the Dec 15 issue of Barron's as saying that he has never witnessed the degree of wealth destruction that has visited on Asia in just the last six months. Steve also mentions that grain orders from the SEAsian countries have been cancelled, and that food demand is the last thing to go during a deflationary process. Hence he goes on to say - - we are at risk for severe world wide deflation.

My question to Steve is this: What you are predicting is a massive world- wide deflationary collapse. If you are correct, gold stocks would be a poor investment right now, because the risk of massive deflation ( US market crash ) is around the corner. I would submit, in parallel with the 1929- 1932 period, that gold stocks might not be a good investment until after the initial market crash. Investment in physical gold would offer a lesser risk, but even that might offer a greater return later.

Third: The dollar has been dropping for three days: From 101 to the current price of 98.5. Since the Monicagate matter is apparently the most serious threat ever to the Clinton presidency, I wonder if the dollar drop and the gold rise is actually do to a world- wide loss in faith of the strength of the US dollar. If so - - we may be seeing the beginnings of a presidential crisis gold rally - - which as I recall also occurred when President Nixon was under a cloud during the heatup of the Watergate crisis. As long as the US stock market dwindles or steadily drops, gold stocks will do well. But as I have said ( as well as others ) if you wish to invest in gold stocks, keep one eye on the exits for a possible stock market crash, which will suck the gold stocks down. One could make a quick profit in gold stocks before a market crash ( which may not come this year ) but beware the crash of the gold bug Tsunami!

Have a nice weekend, everyone!

You guys never give an inch - I admire that. But Im

surprised to hear that Warne and the Waugh brothers are on

the second team - That first team must be a lulu.

a little weird and really surprised ME. My best

quesses at the cost of the new conglomerate were

maybe $325/oz at best and I couldnt see getting in too

deep before gold rose near that point. I felt ok

on Harmony as I had info on the restructuring very

early on. So safety first said Harmony. Rangold

which owns them both plus massive African exploration

rights went up just as well - 28/29% . And Kloof

moves 21% DESPITE the Libanon and Leeudorn Handicap!!

Regrading IDT tax loss comment - id say no - guys had

losses on ALL golds - Why sell only DD. Regarding IDT

point 2 - Id say maybe - The DD move seemed to start

here - The local gold market was OFF over 2 % here but

DD was UP 13% prior to the close. BUT maybe it was

overseas buying. I doubt if the results will be that

good anyway.

I suggest something else BUT ill come to that.

I know Blanchard has been pushing DD pretty hard and

I understnd it has gotten a recent play in the foreign

press.

Now IF a man KNEW that gold was going to go up a

LONG WAY, DD is the play without any doubt. It is

the most highly geared mine that I know of. Also I

think its production is UNhedged - Abx, for

example, is screwed in a fast rising gold market as

it is locked in at its hedged price and doesnt make

much money even at those prices. Similar comments

would apply to Kloof. Every local broker is giving

it a sell since Libs and leeudorn should be closed

down UNLESS gold rises above $400.

So I suspect some fairly big players are taking

good position in DD ( and maybe kloof ) guessing for a

gold price run.

Also Remember - DD is not liquid - very little script

out. Thus in a down market it falls like a rock, and

in a rising market its a star. ABX has a lot of

overvalued script out - a bit like us $ with very few

ounces of gold per share.

Guys like Zaddeek like ABX and I hope he owns a lot

of it. Id hate to see him buy any RSA stock - you know-

there goes the neighborhood kind of thing.

Shove your 5th dimension - Im not taking my ball

anywhere - Im taking it to your house and Im gonna

play on your front lawn, little boy. Sure you said

to buy RSA stocks - sure you did -

Did you do any time on Clintons staff - If not, they

really need guys like you at times like these. You

are tops at rewriting and misspelling history.

for Oris

Love your posts. Glad to see you patching things up

with Ziva. Can hardly wait for salad recipe. I think

I overdid it with teboulli yesterday ( burp ) . What is

best dish to accompany teboulli ( other than absolute )

roast lamb, or what

For Haggis

Did you watch cricket yesterday Did you enjoy

sight of RSA coming back from nowhere to win first

game of final. Did you SEE alan Donalds fast balls.

No one else did. Particularly Aussie batsmen. Did

you SEE Mr Cool himself Hansie Cronje. What a game.

Aye.