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To: Oeconomicus who wrote (143208)	6/20/2002 2:34:22 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

You can take all I know about government bonds and put it in a egg cup. I am long the Swiss Franc as a conservative hedge.

To: Oeconomicus who wrote (143208)	6/20/2002 3:41:57 PM
From: GST	Read Replies (2) \| Respond to of 164684

"why buy an asset that might indirectly benefit from a declining dollar when you can buy assets that will directly benefit?" An excellent point. The gold market is tiny compared to the currency market -- think small float, and remember the impact of a small float on prices for a positional good with no intrinsic value (like a stamp collection). For every 1% move in gold there is on average a 3% to 5% move in gold stocks. If I am in the Bill Gross league, I am not definitely not going to put more than a very small amount of money into gold (if any at all) -- but even a little has a huge impact due to the small float which is magnified as you get to the gold stocks. Then throw in the kicker -- a market that is skewed to the short side by several thousand tons of gold. Gold stocks are the "tech stocks" of the first decade of the 21st century. On the other hand, there is glut of actual tech stocks and their prices are moving towards actual business valuation models -- turns out they are not worth much after all, and probably a lot less than they are selling for today. Tech stock investors will increasingly recognize that there is a new train to ride, and that in itself will help take us where Anindo has suggested we wil go -- with NEM on the cover of Fortune magazine -- then sell.