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To: Bill Murphy who wrote (35666)	6/22/1999 12:14:00 AM
From: Ironyman	Read Replies (1) \| Respond to of 116791

Bill,,, Have you seen the new television ads by the Gold Council? They talk about the '29 crash , show pictures of tulip fields , etc........ Things are heating up for two different golds of which I have an inside track. Looks like there is going to be a rally in metals.......With the news about Japan having increased their gold and copper imports. Regards, Eric Parde

To: Bill Murphy who wrote (35666)	6/22/1999 12:39:00 AM
From: Bob Dobbs	Read Replies (2) \| Respond to of 116791

Bill and Ken: The hedge books of the largest and best funded gold companies are enormous. They are aided by the willingness of the CBs to lend up to half of their hoard. The momentum of this short has enabled speculators to scramble onto this bandwagon, thus adding to the physical imbalance. I believe the generally held view on the street that gold is being demonetized, is no longer relevant, and is being dishoarded by the CBs, is largely fostered by the resultant price action, and not rooted in fact. On the whole, there has been no net sales of CB gold in recent years. If anything, accumulation has shifted to the East. This trend of loaning out physical will not continue indefinitely. On the contrary, I believe the tide will recede and eventually turn, probably with a vengeance. At some point, the Bullion Banks will find themselves in a bind they can't extricate themselves from. Either gold spikes and they're caught having to deliver high priced bars back to the CBs, or their producer clients will go belly up before the spike, leaving them holding the empty bag. Ken, your suggestion of an agreement between producers to shut down all higher priced production in favor of just recycling it from the CBs at low cost has merit, however, consider the opposition GATA is targeting. Certainly these groups would be hungry to point out any obvious "counter-collusion" in the market. For this reason, it would be difficult for GATA to propose such a scheme, IMHO. Bob

To: Bill Murphy who wrote (35666)	6/22/1999 8:33:00 AM
From: Bobby Yellin	Read Replies (1) \| Respond to of 116791

Just curious if it is just hedge funds playing the carry trade...I don't think so..maybe my assumptions are false..ie is the Italian bank a hedge fund? (again maybe I am being too tangential) also if Greenspan is aware of the "bubble" and wants less liquidity in the system..at some point won't he want other faucets of cheap money to be limited..I wonder how much leverage is created by the gold carry trade

To: Bill Murphy who wrote (35666)	6/22/1999 8:47:00 AM
From: Ken Benes	Read Replies (3) \| Respond to of 116791

Bill: If some producers are considering replacing non economic gold with cb gold, there is no better time to begin the process than now. The BOE is about to begin a scheduled selling of 415 tonnes of gold over the next year. Let the producers by it all now at the first auction and in public and at the current price. You want to see a reaction, well you will get one fast. First the BOE will do a double step trying to figure out a way to circumvent selling to the producers and continuing on with the scheduled sale in order to keep the press going. It will fail miserably. Secondly, the Swiss will go catonic. They are not happy selling any gold and are probably doing it reluctantly. Thirdly, the US formed policy of selling IMF gold will run smack into a tidal wave of growing opposition when the gold market loses some stability as a result of the producers actions. This third factor will be compounded if the producers target the IMF gold for purchase. It is there was ever a time for the producers to become proactive, the time is now. Ken

To: Bill Murphy who wrote (35666)	6/22/1999 1:24:00 PM
From: Alex	Read Replies (2) \| Respond to of 116791

WASHINGTON, June 22 (Reuters) - The United States will not back the sale of gold from IMF reserves unless Congress authorizes the plans, U.S. Deputy Treasury Secretary Lawrence Summers said on Tuesday. Summers, speaking to the Senate Banking Committee, said the administration would not try to ''go round'' Congress on this issue if Congress declined to back the sales. ''As I understand it, the law requires congressional authorization for IMF gold sales or for U.S. support for IMF gold sales, and so if that approval and authorization is not forthcoming the United States will not be able to support in any way IMF gold sales,'' Summers said. The U.S. administration, like the governments of other major industrialized countries, backs the idea of IMF gold sales. The money would be put into a trust fund and revenue from this fund would be used to finance lending and debt relief programs for poor countries. biz.yahoo.com