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To: Victor Lazlo who wrote (110618)	10/16/2000 10:49:21 PM
From: GST	Read Replies (1) \| Respond to of 164684

Victor, oh, sigh, most of the "gold" is IOUs -- the only glut is in gold IOUs. As long as the IOUs are never called, you can make it look like there is a glut. If the IOUs are called, there is a crisis of supply because there are far more IOUs than there is gold. But you can use the IOUs to create cheap credit and invest the cash in the stock market -- the gold carry trade. So long as gold goes down there is an incentive to print more IOUs. If gold goes up, the IOUs cannot be absorbed fast enough -- simple as that. It has not happened. It might never happen. DOW 5,000,000 here we come. Or the stock market might stall out and the IOUs could get called, after all, they are in the hands of speculators using them as leverage -- they are LOANS Victor. Call these loans and see what kind of crap hits the fan. There is no GOLD GLUT :)