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Gold/Mining/Energy : Flag Resources (FGR.A A) -- Ignore unavailable to you. Want to Upgrade?

To: larry craye who wrote (2375)	2/24/2000 9:22:00 PM
From: Ptaskmaster	Respond to of 4269

Message 12968702 napalladium.ca napalladium.ca

To: larry craye who wrote (2375)	2/24/2000 9:35:00 PM
From: jbr29	Respond to of 4269

Hi Larry, Your action is perfectly understandable. I would like to take issue, however, with the inference in the included article regarding the ability of government to control price when markets become disorderly, as has the Palladium market. Insofar as the actions undertaken by the TOCOM (and to a lesser extent the NYMEX), yes, government or quasi-government intervention will stem speculative interest, but ultimately government cannot control fundamentals. They may be able to modify reality for a period of time, but eventually if the product is needed it will come to market, even if it is in black market form where price can be discovered (usually at a higher premium than a free market would provide - just look at the illegal drug market). How much of the Palladium produced at Norilsk has already been delivered to market through "unofficial channels" in spite of governmental control ? There are a few greased palms there. Some might argue that the Hunt Bros silver corner in 79/80 and subsequent actions taken by the CFTC (inspired by Mocatta) shows that fundamentals don't matter if the rules are seriously enforced. I disagree. A fundamental shortage in silver had developed by the late 70's upon which the Hunts sought to capitalize. The trading restrictions imposed upon the Hunts, sequentially, rather like the new TOCOM restrictions, reminded me of the Monty Python movie in which the gallant knight, his right arm severed, is still game and so must be reduced to a limbless blob. And so the Hunts were no longer allowed to play the game. Now in the previous paragraph I mentioned the "fundamental shortage in silver". What we really had was a fundamental shortage in deliverable silver. Silver in other forms had to be coaxed out. I can remember everybody and his uncle taking the family silver and any jars of silver coins on the back shelf into the dealers. This rush of silver to the dealers, price inspired, resulted in a silver glut over the next decade (new mines came on-line also). Every time I go to the coin dealer to buy more US assay rounds, I don't even have to look at the date because it's always the same - 1981. So the CFTC actions of 1980 essentially bought time for the latent silver to arrive at the market. It must have been a dicey time for these market masters in 1980, waiting for supply, as the prices did a pretty good spike later in the year too, before the melt stuff could arrive. This time (Y2000+)the silver shortage is more real as a lot of the heirloom stuff that came to market in 1980 isn't around anymore. Note that the new silver kings (Buffet, Soros, Gates, ..) don't like the Comex stadium because of lousy officiating. And a real silver market we will have ! Getting back to Pd, it has been years since I served my guests with my fine palladiumwear forks and spoons. Not. Nobody has any palladium in the cupboards, it's just the dealers, the miners, and a few miniscule inventories, down and dirty. This market is going to rock and roll, regardless of what governments do.

To: larry craye who wrote (2375)	2/24/2000 10:10:00 PM
From: ali	Read Replies (2) \| Respond to of 4269

Hi Larry, you are a real speculator if you base your decisions on that crap.Firstly lets have a look at this palladium situation in general. The environmental requirements for this metal will increase by leaps and bounds in the next 5 years,so is the high tech use of this metal increasing.So no worry about the demand.Now look at the available supply! There are not many places where you just dig for it.I doubt that unless the price stays above $500 for platinum metals, there would be much developing going on.What worried me more was the prices to go sky high and the industry being forced to look for substitutes. The Russian supply is a large question mark of course, but only could help us in the long run if they would fill the gap now until more supplies can be developed in the western world.You can count on a 3 year time frame for new development,so the present platinum/palladium prices are not important, other than having an effect on people like you. Now lets look at the Flag/glb situation in particular. I don't know if you are familiar with the geology of the Wanapitei NE of Sudbury.All geological studies, surveys and drill results point to an immense deposit of nickel, copper, platinum, palladium, gold, silver, cobalt,zinc,scandium and other rare earth minerals.Flag has them all in their core samples.As a matter of fact, Flag is the largest landholder in the area and would have it not been for the bad gold situation (flag has already 2 proven gold deposits), the development would have been progressed much better then it is.Also the price for palladium was not that great until a few years ago. Now however, with the catalytic converter and the electric cars coming in vogue, the outlook is much brighter.Just keep an eye on flag and glb, because they are here to stay. BTW I bought your 3000 shares of flag today,because I think they are a bargain.