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Gold/Mining/Energy : Int'l Wayside Gold Mines Ltd (IWA-VSE) -- Ignore unavailable to you. Want to Upgrade?

To: Gary H who wrote (463)	9/14/1999 5:19:00 PM
From: Little Joe	Read Replies (1) \| Respond to of 1321

Here is an interesting article from speculativestocks.com Today, it appears that Martin Armstrong, a director at Princeton Economics, has apparently been charged with a massive fraud against Japanese investors. This is related here as the same Martin Armstrong has been a vociferous defender of the position there is no collusion in the Gold Market to keep the prices down. While it is unclear at this stage whether this fraud will have any effect on the POG. What is true today is the annualized lease rates jumped back up to from 3.5% to over 4% for the six month rate, and all the while the POG held steady. One other item of significance is that today, the US$ went down against the Japanese Yen to Y106/US$. this is a significant drop and again did not affect the POG. As reported by Bloomberg; An officer of Princeton Economics International Inc, a money-management firm, has been arrested and charged with cheating Japanese investors in a multi-billion ponzi scheme that was allegedly aided by a top executive of Republic New York Securities Corp., prosecutors said. Princeton Economics director Martin Armstrong cheated Japanese clients of the firm, which sold more than $3 billion of notes, U. S. prosecutors charged. Of that money, about $1 billion is still owed to investors of Princeton Economics, according to a criminal complaint filed in federal court in New York." The Gold Anti-trust Commitee ( GATA) and Armstrong have been trading barbs for close to a year with Armstrong steadfastly denying there is or was any collusion by funds in the gold market. What is clear is that for the past year, the amount of gold supplied to the market and taken up by purchasers, far exceeds the amount of mined and scrap gold by nearly 80% ( 2,800 tonnes supply to 4,600 tonnes purchased ) With this massive discrepency between supply and demand it is an inconceivable notion that the POG should be at the current price. We believe this current scandal, on top of the LTCM scandal last year and the meltdown of the Tiger fund, poses major concerns to the fund industry and will cause far more scrutiny in their activities. It is alleged that the funds have been major participants in the Gold-Carry-Trade that, along with forward selling by producers, has helped push gold down to these current levels. The outcry and effect on the markets will be seen tomorrow. Little Joe