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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (671)	11/29/2001 5:11:17 AM
From: d:oug	Read Replies (1) \| Respond to of 39344

Question on prior post: Citigroup Inc. & Citibank (connected?)eom

To: d:oug who wrote (671)	11/29/2001 7:48:08 AM
From: russwinter	Respond to of 39344

Leonard Kaplan on Enron: "The USD was weaker today against all major currencies today and thus provided a much supportive influence to the gold and silver markets. The BIG news of the day was Enron, and their collapse from a world-class firm that was ranked as the seventh largest corporation in the world, to a now bankrupt entity that has stopped all payments. Their participation in the base metals is quite large and their influence in the precious metals is as yet only speculation. However, this firm holds hundreds of billions of USD in derivatives positions in their "book", primarily in the energies, arguably one of the largest markets in the world. Please pardon my considered opinion, but this has the makings of a catastrophe that could make the crisis of LTCM a few years ago look like chopped liver. (Please note that I love chopped liver...). Chopped liver aside, it would be foolish to consider this just another decline of a dot-com stock. This is a most serious event and the markets took it rather seriously. Fully 1/8 of all trades in the NYSE were in Enron and the price of the stock fell into the .65-cent range from its highs in the $80's or $90's. And when the market is worried, money flows into the gold and silver markets. I do not know why I feel as I do, but today felt like the beginning of a change of trend in both the USD and the gold and silver markets. I did not do any new buying, I remain unconvinced as of yet as I refuse to trade off emotion and not intellect, but deep down inside I do feel that something important has indeed changed. The next few days will tell. If we go through $275 in spot gold, the $278 area beckons. And silver should see more short covering propelling prices closer to the resistance at about $4.20. You know, it is most amusing that the financial press reports some financial disasters and others are completely ignored. The monstrous decline of the US 30-year bond in a very short period of time (just about 2 weeks in duration) took more than 5% of the value out of US Bond funds. These investors will now have to wait more than a year of receiving interest just to break even. The losses were probably over 1 Trillion USD. I bring this up only to ask when investors just might begin to realize that gold might be the safe haven that they have been seeking. The equities markets have been vicious and quite nasty to latent bulls, and now, the bond markets have smoked investors as well. As losses begin to mount, as one market after another announces its unsuitability, the gold market may indeed begin to garner some investor interest, as it does appear that it might be the perfect vehicle for capital preservation. While a financial powerhouse like Enron goes from the $90 range in price to well under $1 in value, it is very highly unlikely that gold could experience such devastation. This fact is not lost to some players in the global investment markets. "Safe haven" buying may take a very different form than was considered after the terrorist bombings of Sept. 11th.