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To: Maurice Winn who wrote (5603)	7/5/2001 12:42:44 AM
From: TobagoJack	Respond to of 74559

Hi Maurice, <<But I don't think production costs are $300 an ounce are they?>> We are at basically now at the all-in cost of production now for many mines ($250-270). The mines keep digging only because the expensive mines had hedged and are therefore delivering gold at an accounting loss to fulfill their hedge obligation. Had they not hedged, the high cost mines would be shut down. Only makes sense for a senseless metal. Cash cost of production may be around $180. At that gold price I will go to 10% allocation for physical metal. There are many quotes one could pick from the Power of Gold book, and I can agree with all of them ... but on <<people have become intoxicated, obsessed, haunted, humbled, and exalted over pieces of metal called gold>> I particularly like the part about exalted. I will patiently wait for it. Chugs, Jay