We always think of WB as a long-term value type investor -- whose name, as I think you said -- will lend much credence to the long term nature of this rally. Any idea how much gold G Soros and W Buffett have bought already?

Davos ? Watch what Mr. Munk of ABX does with his paper gold. A move to copy WB, but buying physical gold for his personal account would not be of supprise! The CBs have stopped selling/leasing and that has put the entire world of LBMA “at risk”. ABX is of that world.

My guess is that the 'phase change' or the shaking off of the 'old belief system' is beginning. The new era to come will be one where truth and honesty are given more weight, I think. Paper currencies will weaken significantly, with at least one gold-backed currency rising up from the ashes. Probably Asian, as they are having their phase change first. AG knows that a gold-backed currency is possible in modern times, and the Univ of Warwick Economic conference in 1991 described how it could be done. Our leaders will be held to higher standards of honesty, and much of the hidden corruption in our government ( generated by too many cold war years of unlimited funds ) will be rooted out. People will start clamoring again for truth in government and a grass-roots approach.

Unfortunately, none of this will come to pass until after a major crisis of some kind, and economic hard times. This is apparently human nature -- that real change does not occur until the hardship begins. How often does that new streetlight get put up on the corner unless someone died in an accident there?

The perfect example of this process is what is happening to our military. Nothing will be done to repair the last few years of damage -- until we have a major mishap in the field. Perhaps a small speed boat attack force penetrates our carrier defenses. Or a peacetime nuclear accident in Japan. Or more military plane crashes.

Only after the current political leaders of our armed forces are deposed through some major public embarrassment will competent experienced leadership return. This is the human condition in a nutshell, and why we have our 'phase changes'

I wish there were another way, but contrast and change does seem to be a better educator than the status quo. But -- could we not remember the mistakes we have made before -- and at least make new ones instead of making the same old ones over and over again?

Mr. Studio. R.,

Will several ( or many ) bullion banks fail?

“when one cannot repay a loan, it is done” !

Are the bullion banks bonded?...

In the real national/ world there is no such thing as “bonded”.

Look to Korea for proof!

Mr. Sweat,

If oil or the BIS bid for gold, you will know it ! In your terms,

“ up front and personal”

RBA's 167 tonnes ? No comment.

Mr. Kuston,

Please understand, that wealth will move into all forms of real assets as the destruction of our debt/ digitial currency system continues. When the currencies move to a final resolution, it will be the “marketplace for precious metals” that will die first! It is well

known that gold will hold it’s value above everything. All other metals could lose much of the value they gained prior to this meltdown! Remember, “when the currencies go to nuclear war, all paper and paper markets will burn”! Many hard assets will lose in the public mind as confusion will rule. In the thoughts of many, gold will perform!

It was I who posted that $6.00 silver is way too high, the market fundamentals don't support it, and that I would sell it into a black hole. I didn't believe the whole COMEX draw down. I've seen it too many times before. I then proceeded to put in some shorts that got creamed on the 10th of December. Woke up the next morning to find the shorts had been stopped out. Thank you for reminding me of the most painful trades I made last year.

After the run up to 6.40, I posted hereabouts that, contrived or not, silver will run. I still think there is plenty of silver to be had. Doesn't matter, the game is afoot, and they will run it where they will. I nibbled at it ( 46,000 oz ) between 5.70 and 6.00. Sold it all yesterday and today and will wait for a dip to buy back in. I could have put in another 200,000 oz at just below $6 a couple weeks ago, but I let caution stay my hand. I have been reluctant to put in new longs until things settle down a bit. I hate chasing a market. It will give us another chance at it. Silver always gives you another chance.

I must admit the whole WB think adds some credibility to this move and adds the chances that the price can be sustained long term. The perception of WB seems to be that he is not a quick slam artist and is in it for the longer term. This bodes well for continued higher prices. I will not short this market here. I am salivating at the prospects of a fat short, but silver is a mad dog no and I will respect its snapping jaws. Remember that the 1987 rise to over $11 was in direct response to the S & L crisis. The move above $16 in 1983 was……………. Hell, I don't know, I was in Beirut dodging artillery in 1983, who cared about silver?

I hold no shorts in any precious metals now. Never shorted platinum and my gold was all covered at 305 - 308. As for sustained high silver prices, ask yourself one thing…….. has silver ever stayed up? True we may be heading into a new era of silver, but I don't think so. I think projections of $10 silver are premature. Regardless of where it goes, it will not go there in a strait line. There will be volatility, and volatility is my friend.

Read your repost of TB's CNN interview. I know Jacques Lubin of the Platinum Guild. Haven't seen him since November, but I have dinner with him a couple times a year. He likes the fact that I sold over 6,000 one ounce platinum Maple Leafs and Eagles last year. He gave me a nice set of cuff links and tie pin made from 1/4 oz Platinum Eagles. This is the guy almost single-handedly responsible for the Platinum American Eagle coin. He lobbied for more than 2 years behind the scenes to make it happen. He is well respected in South Africa and Russia and is very level headed in his projections.

To the paranoid who thinks Bart is adding typos to you posts -

Its called proof reading, give it a try…………..

Will the paper market ever represent the physical?...

You will see it in out time!

Will a total collapse be necessary first?

Perhaps a “almost total”

It seems the vested interests in the paper game are powerful enough to

keep the physical down indefinitely?

In a very real sence, games can go on forever. The question here is;

Can those powerful thru “paper wealth” go on indefinitely? History has shown that they end suddenly, with great puzzlement as to the loss of importance without wealth.

Mr. Junior,

Any nation/state can put it’s economy/currency on a gold standard. They only have two requirements. Own a stockpile of gold and raise the price very high!

In the past, when currencies were gold, a nation could not lower the amount of gold backing it’s currency ( raise the price of gold ) because it lowered the currency unit worldwide and created payment imbalances. Today, no nation/currency is on a gold standard. The first country that starts will own the rest for some time.

Find me a country with many needed resources, little debt in relation to the assets and a national pride to lead? Let them price gold at many thousands not only in their currency but also in their resources! The world would buy from them, cheaply in gold but dearly in all other unbacked currencies. The markets would do the rest!

The large modern currencies, of today have only debt ridden economies to back them. They cannot change as debt blocks their path. “To change is to live and to live, some debts must die”. The owners of much of this debt must lose if change is to occur. Even the new EURO will not be backed by gold! It will HOLD gold only as insurance against the worst outcome, war.

Yes, an oil state comes to mind! It could even be China!

Another - Did I misunderstand you posts last year? When you were promoting your gold theory last year - you stated silver and platinum would crash along with paper. I remember specifically asking this question just before I made a large physical purchase. Today, you are promoting world wealth will go into all physicals. I ask only for personal reasons. My physical collection has been going on for a long time, that's how I found Kitco many many months ago.

ounces of silver for US$130 million; US$6.92/oz.

a ) SILVER STANDARD-SSRIF

b ) PAN AMERICAN-PAASF

c ) DURBAN DEEP-DROOY

d ) RANDGOLD-RANGY

BOTH DROOY and RANGY gained more today than SSRIF or PAASF.

just a thought.

What will happen when we find out that Warren has really been buying gold, but was just too embarrassed to say so? : )

Timing? Most of the very large buyers completed much of their conversion all of last year. When we speak of these entities one must know that they purchase much larger amounts than Berkshire. Most cannot understand that it is difficult to take five or ten million oz./gold in physical in a month or less. Note that Mr. Buffett has taken six months and only purchased about half of his silver! Even here we speak of only $300m for the amount taken. At this time the market is very, very tight for large money to go into physical. Paper, yes! I could move five billion US into paper metal very fast, but not physical.

Is silver being played to ignite ? Only the small paper movers are trying for the “fast buck squeeze”. Most of them get eaten when the lions come for food. The big wealth is only trying to convert! Silver is good, but always to small. Perhaps at $150us it would work? Most are looking for a “currency/wealth” holding with history! They, ( this includes some

CBs ) want a holding that is spread far and wide, and very deep! Gold is good.

Anyone with news from the assay, or is this following in line with the rest of the silver mining stocks?

I love it when a plan comes together, don't you? GO SILVER!

The most important thing to observe is that Mr. Buffett did NOT use any form of paper to represent his silver. No options on silver, no futures, no options on silver futures, no silver mining stocks, no leased silver deals from mining stocks and no MARGIN! Most of the large buyers of metals are buying the physical, outright. Mr. Buffett had Berkshire

Hathaway purchase silver as part of it’s long term “economic investment outlook”. Not to be confused with a leveraged, quick profits bet. Understand, that Berkshire plays within the “world paper economy parameters”, they are not looking for a currency replacement. What is not seen, are the personal holdings of Mr. Buffett, Mr. Soros and

countless other “world wealthy”. In those accounts you will indeed find silver, but also, much more gold!

Note, that he was buying thru much of last year. So were a number of others. The one common thought from them all is that, “the real wealth will be held in PHYSICAL form”!

“you may also follow in the footsteps of giants”

I have a fair amount of physical silver, bars , eagles, and coins. I would like to know how to get best price if I decide to sale. My coin dealer says 50cents less than spot on englehard bars, surely Ican do better than that? Any suggestions appreciated.

FDPMX is being hurt today, IMHO, by weakness in Meridian, Normandy, and

only small gains in Euro-Nevada and Franco-Nevada.

I suspect - and I may be wrong - that the FDPMX stock mix has been

radically revised in the last six months. This has greatly improved its standing amongst PM funds, from bad ( in 1997 ) to one of the best-performing in this calender year. This has had the odd result of changing its ranking amongst all 7000 or so significant mutual funds, from being in the bottom 20 ( as it was at times last year, on a YTD basis ) , to being one of the top-performing funds this year, YTD.

Thus it is with a low beta....

Some like it volatile.

I do have some concern that the repositioning of FDPMX is such that it will not accelerate as rapidly in a hysterical gold bull as it would have with the 1997 mix. But of course I do not know.

At any rate, I am glad it is doing better. And I pray for George Dolomky ( spelling uncertain ) every day. Well, not _every_ day.

D.A. - do you trade bonds? I need a place to park money - another 20x would be nice. Also, my mail is flooded with nice calls directed to you. I've been forwarding your posts to friends since your pallidium calls. Maybe Kitco hasn't profitted much - but alot of friends and I are extremely greatfull. Thanks again.

For Silver COT go to http://www.cftc.gov/dea/futures/cmxsf.htm

away

Éßtw

RJ, I have been remise. I would like to offer, to you, a VERY SPECIAL invitation to the opening night at my museum. In a sense this 'wink' is yours too ( even though I will be the caretaker ) . It is through your understanding of these PM markets that gave me the 'understanding' of direction and fate of this here goldie. You are truly a wise trader and a good ally. I thank you again for your contribution to this sight. Yu the Man! Are you dry down there I can only imagine what the 'Wedge' was like....whoa.

d.a. - My wink would be much more special to me if this does turn out to be the bottom. The irony is large. Thanks bro for being a part of it.

rodents, raising environmental

fears

BANGKOK, Thailand ( February 4, 1998 00:31 a.m. EST

http://www.nando.net ) -- Thai peasants struggling with hard

economic times are turning to a huge South American

rodent to save the family farm. But authorities fear the

get-rich-quick craze to breed the water-loving animals --

variously known as nutria, coypu or beaver rat -- will end

in environmental disaster and financial fraud.

The animals, as large as a medium-size dog, look like

giant rats with webbed feet and strong front teeth. They

are at home in marshes and swamps and feed on all

kinds of vegetation.

Over the decades, promoters touting the ability of nutria

to breed rapidly have periodically sought to introduce

them in various areas around the world.

The problem is that not much of a market has ever been

developed for nutria meat or fur. And when breeders

can't sell nutria, they turn them loose -- usually into

swampy areas where they wreak havoc on vegetation.

In Thailand, the world's leading rice exporter, millions of

acres of paddies could be at risk, experts warn.

Nutria are already getting loose. At least one found its

way in January to a Bangkok karaoke bar, where its

appearance panicked a hostess who mistook it for a

giant rat.

The Agriculture Ministry released a statement Jan. 9

warning farmers to stay out of the nutria-breeding

business despite tempting advertising campaigns

promising riches.

The nutria is not an agricultural animal, the ministry

said. You will be deceived and will not have long-term

profits. If the nutria is released into nature, it cannot be

eliminated.

Louisiana is cited as an example. Nutria were imported

to that U.S. state in the 1930s by farmers who hoped the

brown-and-gray fur would catch on with the public. It

didn't.

Now, nutria have overrun Louisiana and become a pest.

Their voracious hunger has denuded marshes, and

officials say their burrows weaken levees and bridge

supports.

Thailand and many of its Southeast Asian neighbors are

reeling from an economic collapse and, like the

Louisiana farmers of the Great Depression, people are

desperate to find ways to earn extra cash.

Enter promoters extolling the nutria's money-making

ability. First introduced in Thailand just three years ago

by a Taiwanese businessman, the original 4,000 nutria

have multiplied to more than 1 million.

I first saw my neighbor breed them and earn so much

money in a short period of time that he could build his

new house, said one breeder, Narong Viboolchart. I

then decided to follow.

Thai promoters also play on an angle that always seems

to sell in Asia -- claiming that eating nutria can improve

your sex life.

Its feet, tail and bones are treasures for us, said Suvit

Vivitkunaporn, an importer. They are the key ingredients

for the sexual medicine.

But authorities see a more sinister angle at work. They

say the nutria business is really a pyramid scheme that

will collapse and leave the farmers broke.

The standard contract has a farmer rent a breeding pair

by paying a deposit of 30,000 baht ( $600 ) . The money is

returned after the animals have been breeding for five

years.

The importers pledge to buy offspring from the first litter

at $100 each, then $60 apiece for later litters.

Each litter can number from four to 12 animals, and a

mother can become pregnant three times a year. After

buying the offspring back, the importers rent them out as

breeders to other farmers.

Everyone makes money as long as new farmers can be

found to rent breeding pairs. But Thai authorities note

that eventually no new farmers will sign on, which will

leave the last breeders in without their deposits and with

no market for their animals.

Thais have discriminating palates and there is no

demand for nutria meat. Fur coats are unknown in the

tropical climate. And even in colder countries, the fur of

big rats is not much sought after.

We think this business is sort of deceitful, said

Somchai Sunthornwat, deputy minister of agriculture.

The ministry plans to ban nutria imports, he said.

But in rural Kanchanaburi province in western Thailand,

advertising and radio campaigns are still inviting people

to join the nutria business and go into breeding.

It is the best-ever economic animal, said Suvit, the

importer. Pigs, chickens, even cows can never yield this

good of a result to raisers.

Suvit dismisses the environmental worries raised by

agriculture officials.

The nutria is not a crocodile, he said. If it gets loose, it

won't eat people. Why worry?

By JIRAPORN WONGPAITHOON, Associated Press

Writer

When the current belief system breaks down, and precious metals are 'in' again, the stampede my be a sight to see. We will need to stand out of the way when it happens.

Did everyone notice that there is some talk that the Fed might lower interest rates? I might not if I were AG, but I certainly wouldn't raise them! I think someone on Kitco said not so long ago that this was the ideal situation for gold -- an aging economic growth period, with signs of fraying at the edges -- not a situation where the Fed will want to tighten the money supply noose. The cry0 has been rising nicely. And -- the dollar is too strong for the comfort of many. A very weak situation in Europe, too, where rates are likely to be kept as low as possible. And -- signs US of inflation just around the corner!

away...to make preparations

Éßexcited

ted, i still have no email, dammit! but electricity is a go!

Might I suggest getting a little closer to the money and a closer month? And try a spread ( ratio ) . Your profit potential is MUCH greater and the cost can be the same if you run some numbers. Gold would not have to get to anywhere close to $400 to make some good money. And your risk is the amount you pay for the options. Call your brokerage house and ask to speak to an options expert. Ask him/her to build you a 'ratio' spread.

Cherokee - this play is much more lucrative than to buy out-o-money calls. MUCH. But, since ( you say ) gold is going to $400 this month than you had better sell puts too ( bottom is in, right? )

Volatility is high

bottom is in ( supposedly )

Premiums are juicy

Oh

My!

away...to buy smart and reap greater rewards

Éßgonnawin

Ed and Jennifer Yourdon, the authors of Time Bomb 2000 are a father/daughter team. Yourdon is the closest thing to a mainframe programming guru there is. It behooves us to pay attention to him.

Secondly, Time Bomb 2000 does not hype total-collapse scenarios, but it does not discount them either. It presents several levels of possible problem severity in an effort to encourage people to examine the problem ( s ) which might occur and take steps to prepare for whatever level of 'annoyance' as they see fit.

Thirdly, the link to the Y2K news clippings page has been posted here many times. Many articles listing many companies and govenmental organizations ( there's an oxymoron for you ) taking action, banks like BofA preparing to pay out 80 million dollars in bonuses alone just to keep their programming staff from bailing for bigger bucks, power companies that are just now beginning to analyze the embedded chip problems, etc. etc.

I am a programmer, and I have seen a 50% increase in my hourly rate over the last 6 months, and I plan to make a killing on pure supply/demand fundamentals because of this problem. Just because someone makes money in a certain situation doesn't necessarily imply market manipulation [right? ;o ) ]

away

Éßuffett

go plat

I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country; corporations have been enthroned, an era of corruption in High Places will follow, and the Money

Power of the Country will endeavor to prolong its reign by working upon

the prejudices of the People, until the wealth is aggregated in a few hands, and the Republic destroyed.

send email to jsmithwire.net.au if todays updated chart on East coast and legend mining are wanted.

http://www.wire.net.au/~jsmith/charts/silver/news%20silver.gif

However, I would like to point out a couple of things. Your examples of the depreciation of stock in his companies are absolutely meaningless in the current market. What VSE/TSE resource stocks haven't been whacked this bad? Or worse, for that matter.

Another thing, many exploration companies run honestly and efficiently by capable management fail to ever discover or bring to production an econonmic orebody. There are many pitfalls in the business. Good management can't always avoid all of them all of the time.

The latter comment I guess applys generally, and doesn't necessarily address the specifics of Lou's management/promotion of his companies.

In any case, I appreciate your insights, and I may just have to call the man up, and see what's up. At a glance, the field fundamentals look pretty good, so it may be worth investigating.

Most of this comes from their company website, soo....

On the other hand, it was recently added to the list in a newsletter I subscribe to.....I am not sure if legalities permit me to say whose it is, but he has been around, in time and geographically.

I don't own any. Yet.

the website is www.avino.com

I'd like to open the field for opinions.