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To: BigBull who wrote (88490)	3/10/2001 5:05:43 PM
From: c.hinton	Respond to of 95453

Truelly frightening.

To: BigBull who wrote (88490)	3/10/2001 6:41:42 PM
From: isopatch	Respond to of 95453

Bullsky. Found this passage interesting(g) "Curiously, "strange" things appear to be unfolding in the gold market. Gold lease rates have more than tripled during the past week to the highest level in 18-months. Increasingly, there appears something behind the talk of an unfolding shortage of physical gold. There is, of course, an infinite supply of "paper gold," or derivative contracts that can promise delivery of the commodity or cash settlement. But if there is ever a rush to hold physical bullion and a resulting panic to cover short/derivative positions, things could quickly get interesting. Over the past few years the gold market has developed into a critical derivative market, as well as possibly a key source of cheap financing for some in the leveraged speculating community. This greatly elevates the importance of gold prices. The current gold situation takes on even greater significance in the current environment, where it is likely that a severe dislocation has likely developed in the equity (tech/NASDAQ) derivatives marketplace. There is also the issue of a credit market engulfed in unprecedented leverage and derivative activity. This is undeniably an acutely fragile financial environment, where problems in one market (especially in derivatives) can quickly transfer to other markets." But how about the opportunities that can quickly transfer from one market to another. On of the problems I often encounter with PERMA thinkers of either the bullish or bearish stripe is that they turn into stopped clocks and are the last folks I want to listen to. At the close of above quote we see the habitual tendency to present the glass as half empty!! I take strong issue with this attitude ESPECIALLY with the golds right now. The glass is half full and FILLING as we speak. Even if you want to present the deflationary case Bull, gold qualifies as a very important component for every portfolio. One of the great Bull Mkts in gold was during the 1930s, perhaps THE classic deflation of this century in the US as well as the rest of the world. AND DON'T be late to this Animal House party, me bucko(ggg). Reason?! The very very small total market cap of the gold stocks has to be a prime consideration of every investor currently fence sitting about where to put all the cash they've been sitting on since they've bailed on some or most of their other equity holdings. Isopatch