Internet Mania

The internet stocks continued to defy gravity yesterday as another round of explosive upside movement took AMZN, YHOO, LCOS, & XCIT to all-time highs, to name just a few. YHOO, whose shares have almost tripled this year, rose over $26 yesterday to close at $199.25. It is mind boggling to think that we recommended YHOO as a buy at $115.25 jsut 14 days ago. It is apparent to us that most of the buying in these internet stocks are the work of small individual investors. How do we know? Because the average size trade moving across the tape has been small. The average size trade in XCIT, for example, was only 452 shares. THe average size trade in LCOS was 491. Others had even a smaller average size trades. Institutions, such as mutual funds, typically like to buy in lots of 10,000 shares or more, so the smaller lot sizes are definitely the foot prints of little guys like us. Keep in mind that it does not take a great degree of buying to cause a huge run up in these internet rockets, as they are relatively illiquid. YHOO, LCOS, XCIT and SEEK have a total of about 120 million shares outstanding. That is compared with, say, APPL which has 133 million shares. A few hundred shares to buy can even have an effect. Here is an interesting point. Many traders, astounded by the incredible rise of this sector, were caught short stocks like AMZN and YHOO. But get this. Yesterday was one of the biggest short covering days in their history. Could that mean their run up is near an end? Maybe. But who really knows? If there's a chance athat the end is in sight, I say the top will be put in between today and Thursday. That's my predication, whatever that's worth. Let's wait and see.

Gold Faces Threat as European Central Bankers Mull Sales Policy

Frankfurt, July 7 ( Bloomberg ) -- Gold investors, already

smarting from a 30 percent price drop since 1996, could get a

jolt as soon as tomorrow if the new European Central Bank clears

the way for more gold sales by its 11 member nations.

The stakes are huge: The ECB will probably only keep about

10 percent to 15 percent of the members' $121 billion in gold

reserves when it takes control of monetary policy in January.

That would leave almost 12,000 metric tons of gold in regional

bank vaults, or the equivalent of five years of output from the

world's gold mines.

Unless the ECB takes control of all the gold, including the

regional reserves, member nations could decide to sell their

holdings, driving down prices already languishing below $300 an

ounce and close to the lowest in 18 years. Gold in London

recently traded at $295.05 an ounce.

``The market is scared of random central bank sales,'' said

Graham French, who manages about $400 million in resource equity

funds for M&G Investment Management in London. ``People are now

trying to figure out if the ECB will coordinate sales -- that

would remove the uncertainty weighing on gold.''

To be sure, the new central bank may not decide its gold

policy today or tomorrow, though ECB President Wim Duisenberg

said last week that setting a policy is at the top of the bank's

agenda when it meets today in Frankfurt. A press conference is

scheduled for tomorrow at 11 a.m. local time.

Control Policy

As of January, the ECB takes charge of monetary policy for

Germany, France, Italy, Spain, the Netherlands, Belgium,

Luxembourg, Finland, Austria, Ireland and Portugal.

``It could still take until September before the gold issue

is settled because they have so many monetary issues to deal

with,'' said Kamal Naqvi, a precious metals analyst at Macquarie

Equities Ltd. in London. ``If they do say something today or

tomorrow, it will take an absolute freeze on gold sales to really

move the market up.''

Even though gold isn't used to back currencies anymore, some

analysts doubt that Europe's central banks will do anything to

reduce the value of their gold reserves.

``The ECB and its members will not be sellers of gold,''

said Leonard Kaplan, chief bullion dealer for LFG Bullion

Services in Chicago. ``From a traditional sense, gold has been a

major part of the reserves of European countries. For them to

sell would weaken their currencies.''

Still, concern about sending gold prices lower and devaluing

reserves hasn't stopped other central banks from selling gold

during the past two years, including ECB members The Netherlands

and Belgium.

``The big question is not how much gold the ECB itself will

hold, but what happens to the rest of it,'' said Urs Frei, head

of precious metals trading at Credit Agricole Indosuez in Geneva.

If the ECB asserts power over sales, prices are likely to rise,

he said. If banks can sell at will, prices likely will fall.

Unloading Gold

So far, several central banks, including Australia and

Argentina, have unloaded big chunks of their gold reserves in

favor of better-paying assets, such as government bonds.

Those sales contributed to a 22 percent drop last year in

gold prices, which have lingered below $300 as the European Union

debated the fate of its own reserves of the precious metal. Gold

reached an 18-year low of $276.75 an ounce in January.

Both the Australians and the Argentineans said they prefer

to hold government bonds, which offer better returns in an era

when gold is no longer needed as a hedge against rising prices.

Even so, Germany and France, the world's second- and third-

largest gold holders behind the U.S., are expected to argue for

strict control over reserve sales.

Both countries experienced hyperinflation and two world wars

earlier in this century, which has kept their finance officials

believing gold should be held as an asset of last resort, to be

used in times of political an economic instability.

The Dutch and Belgians, on the other hand, have together

sold about 800 tons of gold reserves since 1996, and are seen as

less likely to defend the metal's place in the ECB.

``Some countries will be well ahead of others in thinking of

making sales over the next few years, and they are the ones the

ECB has to keep in mind saying something on gold,'' said Kamal

Naqvi, a precious metals analyst at Macquarie Equities Ltd. in

London

And I wasn't going to look any more. Hah! )

I just tried to post it and it doubled up for me too on Preview.

Wierd new bug at Kitco?

http://www.drudgereport.com/flash.htm

This looks hot.

No more! Only good news the rest of the day. Got any?

rhody ( @ crazytimes: Golden Eagle has done no drilling, just test pits. )

What exactly is the stage of gold evaluation for this project ? If, as rhody points out, there has been no drilling and only test pits, then there can be NO MEASURED RESOURCE, and hence NO PROVEN RESERVE - ie a fraud looms on the horizon !

Has a measured resource been defined, and if so who has carried out an independent assessment, and has a report been published ?

The figures quoted by GEI ( 55 million tonnes + ) are indeed interesting if they are true. However, one must be realistic - a resource is a resource and there are clear discriminations between an inferred, indicated and measured resources. A resource does not consititute a reserve. It is the mineable reserve that has monetary value, and that is totaly conditional on the feasibility study forming the basis of a bankable document.

It is common practice for a bank to appoint an independent group to compile the feasibility document, particular with junior explorers involved.

Remember Pegasus and Mount Todd in the NT of Australia. BIG apparent reserve, but I now hear that there is a legal case against the group who compiled the feasibility study.

It is important that a project is reported in context, by Geologists. Vronsky are you a Geologist or a promoter ?

Och aye the nooooooooooooooo...............

Subject: ( True ) Australian Scam

True Story -

Australian Police have been unable

to recommend a prosecution for the

following scam:

A company takes out a newspaper advertisement claiming to be able to

supply imported hard core pornographic videos. As their prices seem

reasonable, people place orders and make payments via check.

After several weeks, the company writes back explaining that under the

present law they are unable to supply the materials and do not wish to

be prosecuted. So they return their customers' money in the form of a

company check.

However, due to the name of the company, few people ever bother to

present these to their banks. The name of the company:

'The Anal Sex and Fetish Perversion Company'.

This is not just Monica Lewinsky. There is another blonde member of the White House that Monica was jealous of -- as yet unidentified. And -- there may be stories of Chinese visitors with shady backgrounds that visited BC. Perhaps something about ChinaMissleGate or Vince Foster -- missing papers removed under Hillaries direction -- or ChinaCommerceRiadyGate. BC will fight this every step of the way until they literally carry him out of the WhiteHouse.

I wonder what BC has up his sleeve to counter these events. Did you all notice that members of the Congressional Committee to begin impeachment proceedings has been instructed by the Chairman of the Committee not to take any Vacations in July? Perhaps something big is brewing.

If we go forward with impeachment proceedings, it will be interesting to see how gold/gold equities will respond. You would expect it to go up, even if the equity markets droop. A market crash is probably unlikely, unless other triggering events coalesce.

http://biz.yahoo.com/finance/980707/peru_s_may_1.html

http://biz.yahoo.com/finance/980707/markets_ru_1.html

FWIW

FINALLY! They are in the information age. Thank you, Mr. Beaty!

http://www.panamericansilver.com

http://biz.yahoo.com/finance/980707/russia_imf_1.html

http://news.bbc.co.uk/hi/english/world/europe/newsid_128000/128129.stm

The Prime Minister had to cut short a visit to Japan due to this non-crisis. And now a popular general and war hero has been murdered. The Russian Stockmarket is steadily declining, and interest rates are back to 120%.

What's next? How will it affect gold? Oil?

Gold:

810,298 Registered

249,614 Elligible

1,059,614 Total

Silver:

42,735,583 Registered

43,164,753 Elligible

85,900,336 Total

The brokerages broke out...MER is at a new high. No inflation. Meanwhile my health care costs just went up by 15% and my utilities by 4.5%. The catfood from Thailand went up by 10%, and milk and vegetables went up by 25%. But no inflation.

--

I back dated a chart for AMZN June 18th or something. Was going straight up at 45. I doubt if my nerves would have stayed with it. Maybe we should hire a 15 yr old that smokes pot to trade for us. :- )

I went down to the Farmers mkt the other day. Ark home grown tomatoes are .50 lb. In the local fancy air conditioned store they were $1.50 Same with broccoli.

I see the HMO's don't want your Doc. to write prescriptions for pills. Cost them money to make you well. Cool!

I use to rent a town house in a nice area 15 yrs ago. Last night 3 people got into it with each other and 2 are dead. 1 is alive but has no face.

Strange things are going on.

--

GOT ENOUGH GOLD. THE MONKEE PERSON IS HEADED FOR SILVER COUNTRY.

We love you Alan, oh yes we do,

We love you Alan, and we'll be true,

When you don't speak of gold, we're blue,

Oh Alan, we love you.

- FRB Top-Dog Shares His Candid Opinion On Gold

- Greenspan: Still Going for the Gold

Once at the following website, scroll down until you see Mr. Greenspan’s bright-eyes peeping out at you, then CLICK him... where

ever you like.

It's necessary to delete extra letters en before pasting to the Internet:

http://www.golden-eagle.com

http://www.newsday.com/ap/rnmpin1e.htm

Clashes in Yemen Kill 11 People

Weren't the events that lead up to gold peaking at $850/oz in 1980 a 'doomsday' scenario? It is fear of the unknown that makes gold go up, not necessarily reality itself. Rising interest rates are to a degree a reflection of that fear as well.