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To: Giordano Bruno who wrote (24206)	4/8/2000 10:11:00 AM
From: Joan Osland Graffius	Respond to of 42523

jjsirius, First of all I am not supporting James Smith, I posted it for information/debate purposes. I believe most people expect that stocks will get back to "fair value" someday, but greed has taken over and we are in times where paper assets are overpriced. Gold like any other commodity has a fair value and at times it becomes overpriced because of fear and greed. i.e. during the recent time of inflation. The statement by Smith assumes that people that hold paper assets that are over priced hold gold both paper and physical long. The other side of the coin is how much gold are people shorting for leverage. The data on Tuesdays down draft showed that gold jumped in price and that gold has not been forgotten as a place to hide. What Tuesday showed me is there are a lot of folks out there that know they are holding paper assets that are overpriced and also know that someday these assets will be worth much less than what they paid for them. These people expect to sell these assets for more than what they paid, and hope that they will be out of the paper when the real price is realized. Interesting times ahead. Joan