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To: mozek who wrote (486)	12/3/1997 10:04:00 AM
From: Staff	Read Replies (1) of 686

Mozek for me, it really has little to do with supply/demand for the metal itself. Rather supply of money being invested in relation to demand for gold as as one of the vouge choices as a vehicle to park it in. When gold was $500.00 then $750.00 and headed towards $1000 to $3000 it was the late 70's. The Dow was under 1000. The vogue thing to do was to subscribe to the Ruff Times or take in Jim Dines or Blanchard's gold bug seminar. Bunker Hunt was the Bill Gates of his time and Oil wells and tax shelters & Gold mines where the investment of the day. Back then currencies were only as good as the paper they were printed on and how stable the ecconomy of the coutry was. Frankly the Yankee dollar is more in debt today than in the 70's but Clinton instills more confidence in people than Carter did. Swiss Francs were always the best bet as for a solid currencly not US dollars. The German Mark has its probelms due to the expansion and what it has done since the was came down. But if you want to compare the 70's and 90's I sure don't see where apaer money and its true intrinsic value that stands behind it is stronger today than in 1978. But its preceived value and what people assume is safe or not safe that really matters. back then Bunker Hunt had everyone convinced gold and silver were more tradable than a currency inffused with a goverment promise to pay. People have more confidence now... so... gold loses some luster as we have seen. Its just recycled now. Same game... different names essentially nothing changes... just recycled. What was hot is now not and vice versa. I read the other day that the big rage in schools right now are yo yo's. No kidding... they are banning them from class rooms right now in the school down the street because they are so disruptive. I was I think 10 last time yo yo's were a big deal.. Today.. Now you have this huge influx into stocks & bonds and its even bigger today then back then. Gold is out of vogue is all. Has nothing to do with demand itself but demand relative to the influx of investment capital. Back then.. some had 50 or 75% in gold. Every old F@rt around had a gold $20.00 double eagle on a chain around his neck! Demand frankly is higher for gold but in relationship to investment income it maybe only consists of 4 or 5% versus 50% of the average Joe's investment portfolio is all.. This is the only difference today... We have to learn from history. One true little saying is what goes around comes around! As they say.. never throw away a tie because it will be the in thing for your kid to where at some time in his life! My life as taught me 2 things as per the market #1) The public will always be proven to be on the wrong in the long run. Again. that' how Vegas builds casino's #2) The smart money is in buying what everyone perceives nobody wants. My guess your seeing literally hundreds of millions being thrown at money managers to buy stocks for mutual funds and they just plain have to buy something. Its what they are paid to do! But I see what i call a dumping into the rally by what I would call professionals up into these levels. Gold still has some time before it takes off...but.... my guess.... your seeing the Soros and Buffet cash beginning the exodus from stocks and into hard assets to some degree. It always looks bad at the bottom and great at the top.

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