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To: Earlie who wrote (141999)	1/7/2002 10:42:37 AM
From: Earlie	Read Replies (1) \| Respond to of 436258

Earlie from Earlie Gold continues to percolate, and in the background, the reasons for a continuance of this are compelling. The Gata gang's civil action didn't get thrown out of court as most expected. Yes, the judge did limit the case, but it was a clear "early days" victory for Gata. This could become more than interesting. Turk published some superb research work that effectively proves that Treasury has an intimate involvement with the gold markets (despite its many denials of same) and that much of the gold most folks think is still in storage in government vaults, has been leased out (or worse?). Ralph Nader is hosting a conference (which I believe starts today) that examines the government's involvement in the gold market. If Newmont wins Normandy one more "escape route" for the remaining big hedgers is cut off. I'm told that worry is turning to panic in some hedged quarters. Are some of the remaining involved bullion banks starting to get cold feet about their massive exposure (gold short)? The lease rates are becoming more volatile and the gold carry trade risk is rising. One large player dropped out last year and my sources tell me that at least one more is looking to quietly exit. The trouble is, their relationship with Treasury is like a marriage..... divorce is usually expensive. The physical market's appetite for the "ancient relic" continues to rise. Gold coins are in short supply globally and Asian/far east demand won't relent. Meantime, the supply side of the equation isn't improving. As I noted on the thread several weeks ago, N. American funds quietly started buying into gold stocks from about mid last year (this is still not showing up yet publicly, but will in the near term). Some that I know of have moved up to 2% from zero in a six month span. The larger gold producers are now actively on the hunt for reserves (as I noted was commencing a year ago) and some analysts are (finally) starting to "connect the dots" with respect to the significance of this activity. Hard to believe that the price of gold is not going to experience a decent rise this spring. (g) Best, Earlie