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To: SJS who wrote (10165)	10/4/1999 9:25:00 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 14427

Let's see....Tiger is facing total meltdown, LTCM bankrupt despite FED intervention, Martin Armstrong of PEI in jail for multi-billion fraud(they say he was short over 400 T of gold and his accounts are frozen)...Gold rocketing up another $6 in asia tonight already. Simple answer would be the gold carry trade has blown up in their faces. I saw one rumor that the FED will "guarantee" the gold to be delivered at some time in the future. Now where are they gonna get it? Fort Knox? I doubt it! The guesstimate is 8-12,000 T of gold has been sold short in the last three years. Total worldwide mine production is running a deficit and is only about 2,500 T in any case. How do think the shorts are gonna cover that 8,000+ T? Everyday the gold price goes higher, their hole gets deeper. What validity does Comex have if delivery contracts aren't honored?

To: SJS who wrote (10165)	10/4/1999 11:07:00 PM
From: Broken_Clock	Read Replies (2) \| Respond to of 14427

Top Financial News Mon, 04 Oct 1999, 11:02pm EDT Gold Rises in Asia for Ninth Day as Speculators, Producers, Banks All Buy By Caroline Falls Gold Rises in Asia as Speculators, Producers Buy (Update2) (Updates price, adds comment, rewrites from 1st paragraph) Sydney, Oct. 5 (Bloomberg) -- Gold rose 4 percent to a two- year high in Asia as speculators, producers, investment fund managers and banks raised bids to buy the precious metal in a rally that's seen the price jump 22.4 percent in nine days. Gold for immediate delivery rose as much as US$13.15 an ounce, or 4.1 percent, to US$330.50 an ounce in Sydney interbank trading, the highest price since October 1997. Dresdner Kelinwort Benson bullion trader Paul Lee said he's never seen anything like the move to buy gold to cover forward and futures positions in his 10 years of gold trading. ''It's like there's a fire and everyone's running towards the same exit door. We have banks, producers, hedge funds all wanting to do the same thing at the same time. We are seeing a supply bottleneck. Producers are backing off from selling. They are standing aside and not selling any more,'' he said. The price has surged from the US$268.75 an ounce level the metal changed hands at immediately before an announcement Sept. 26 by 15 European central banks that they will limit sales and lending of gold reserves in an effort to end bullion's slide to a 20-year low. Australian gold stocks are benefiting from the rally. The Australian Stock Exchange's index of gold stocks rose 44.90 points, or 3.9 percent, to 1189.2, an 11-month high. Twelve of the index's 14 stocks rose. The biggest mover was Normandy Mining Ltd., Australia's largest gold producer and the 10th biggest gold producer in the world. Normandy's stock price rose 6 cents, or 4.35 percent, to A$1.44 (US$0.95). Gold Buyers On Monday, gold for December delivery rose US$12.70, or 4.2 percent, to US$318 an ounce on the Comex division of the New York Mercantile Exchange, its eighth gain in 10 sessions. It was the highest closing price for a most-active contract since Oct. 23, 1997. ''Everyone's trying to buy it at present,'' said John Israel, head of gold trading at Macquarie Bank. ''We're getting calls from people you hear from once every three years. It feels like it's going up.'' Lee said people trying to buy gold today don't know how high the price of gold may go in the present rally, though, some are targeting US$340 an ounce at least.