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To: Mike M2 who wrote (168944)	5/29/2002 11:00:13 PM
From: Secret_Agent_Man	Respond to of 436258

Precious Metals Report Leonard Kaplan Prospector Asset Management For markets of Thursday May 30th CLOSES INDICATIVE LEASE RATES Based on 30 day maturities JUNE GOLD 326.80 GOLD .25/.75% JUL SILVER 4.945 SILVER .25/1.25% JUL PLAT 544.30 PLATINUM 3.00/8.00% GENERAL COMMENTS: About one and a half weeks ago, J.P. Morgan/Chase issued a major sell signal on gold, advising their clients to take profits in their long positions, as they believed the bull run had ended. And here we sit just shortly thereafter with gold some $20 per ounce higher in value. Today, it was Goldman Sach's turn to downgrade some gold mining stocks and to proclaim their disbelief in this continuing move to higher values in gold. And here we sit, after their proclamation, with gold making new highs, the highest since October 16, 1997. I would venture to guess that the Wall Street "boys" just simply can't envision that both investors and speculators are buying, and that the fundamentals of supply, demand, jewelry consumption just aren't the motivating factors to this market as once they were. But, Dear Readers, the motivating factors for a continued rise in gold still favor higher prices. The USD is falling rapidly now, with the Dollar Index now under 112, down from 121 in February of this year. This obviously scares global investors who seek protection from the depreciating USD. Equity prices are still under assault with the S&Pstock index down almost 20% year on year. Add into the pot the growing tensions in the world, and the fact that the global hedge book of the gold producers (who previously sold gold forward) is now in the red by about $5 BILLION USD, and throw in the interest of Western investors who love to buy momentum, stir gently, and you have the recipe for a continuing bull. I trust that, over time, the market will shame Goldman Sachs just as it humiliated J.P.Morgan/Chase. While Wall Street continues to denigrate gold, some analysts overseas take the other side. To quote Mr. John Reade, of UBS Warburg, "with the dollar continuing to look weak, gold looks set to make further gains". To quote Mr. Peter Hillyard, of ANZ Investment Bank, "there's no question that the market is following the weaker dollar, in particular against the Euro...". By the way, the Euro was up again sharply today, almost 1% higher against the USD, seeing price levels not experienced in years. Silver had a 16-month high today, and tested its technical resistance of $4.98 to $5.00 per ounce. The long-term breakout experienced last week continues to point to higher prices. My targets in silver are now the $5.40 to $5.60 level in spot. Discretionary accounts of the firm and traders who follow our recommendations added to positions again today. me-2