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To: Victor Lazlo who wrote (59129)	4/26/2002 11:38:10 PM
From: bambs	Read Replies (1) \| Respond to of 77400

very true...but you also must look at how much gold has been supplied to the market over the last 20 years from central banks..we won't see that in the next 20 years...gold is also getting harder to find....many major mines in the world are nearing there end. investment demand will increase as time goes on ..you can bet on it..one of the biggest reason for not liking gold is because it's been going down for 20 years...wait until the people look a back and see how it performs over the next few years. I think the biggest move in gold will come when it gets back over $800. na sayers will have to eat crow and speculation will come pouring in. gold fever will return..and people won't just greed buy like they did techstocks they will fear and panic buy because they see there crappy paper money losing value. If most people decide to move 2% over there money into gold and silver..it will send the price to $3000 an oz easy. Don't forget about the massive short positions held in the metals...the will be hell to pay for shorts... have you ever read up on SDR's? SDR's Special Drawing Rights were created with the IMF and world governments. each government is permitted to create SDR's at will. 35 SDR's equals an ounce of gold. You are not allowed to create more SDR's (paper gold) then you have in actual gold reserves. The US created enough SDR's to equal there gold reserves. The SDR's were transfered to the ESF. Exchange Stabilization Fund. looking at the books reported buy the ESF it's in black and white. SDR's have been reduced buy somewhere around 87% since 1995. (when gold was knocked down and the speculative bubble in the markets took off) it is believed that the ESF used the SDR's in swaps with other countries or even the IMF for gold. If this is true..(and it's been asked and never denied or explained, by officials)...then 87% of the US gold reserves has been encumbered by this process. It's my belief after reading up on the subject that Fed officials have swapped those SDR's for gold in other countries then leased the gold to bullion banks which sold it on the open market. depressing the price of gold. the cash proceeds from the sale of the leased gold were then funneled into US equities and T-bills.. creating the "strong dollar policy". this carry trade has worked great for from 1995 until 2000. as central banks leased gold and it was sold by leasee's it helped to depress the price...make and encourage more of the same...as money was poured into US T-Bills and Equities they out performed other currencies and markets and helped to create more demand as investors were encouraged to follow the momentum. Now that this process is beginning to unwind..it will crash. i just typed this up in a hurry so please...don't mind all the mistakes...i think it's a pretty good summary of things..in simple terms...you can read more on this subject at www.gold-eagle.com ba