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To: Fun-da-Mental#1 who wrote (49399)	2/27/2001 11:33:23 AM
From: Eric	Read Replies (2) \| Respond to of 77399

Fun-da-Mental#1 I agree with your points. Since the last gold rush in the early 80's ran up the price, a lot of companies expanded gold production and eventually the "mania" ran out of steam because the masses chased it too high. I remember some friends dabbling in gold and silver stocks and they really got burned in the end because greed took over. One friend in particular nailed the market and got out a week before the high and he made quite a bit. I grew up near an Asarco smelter here in Washington state that took copper ore and made copper out of it with byproducts of gold and silver. They almost made more money getting the gold and silver out! Your right that gold consumption exceeds production at the moment. A lot of mines shut down as their cost of production exceeds the current market price for the stuff. The vast majority is still used in personal consumption (jewlery). It's valuable in electronics but we are learning ways to reduce consumption in that area. So I guess my big concern is demand. I just don't see it. As inventories go down the price will rise a little and then the marginal mines will start up and level off the price of the stuff. I guess what really impresses me is the scale of some of the really big mines in the world. They can sure move a lot of dirt nowadays! Eric