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Strategies & Market Trends : Precious Metals mutual funds (gold, silver, PGMs) -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (677)	7/21/2002 3:33:38 PM
From: Larry S.	Read Replies (1) \| Respond to of 972

Dan, et al, I didn't find any significant mention of PMs in Barron's this week and I didn't hear any significant mention of PMs on the financial shows I watched this weekend. However, there is a lot of talk about the market falling further. One article in Barron's observes that there is potential support at 7400 but the Author doesn't sound convinced. The action of lease rates continues to be interesting. Every rise in the price of gold has been accompanied by a reduction in the one-year lease rate and visa versa. The lease rate backed off a little Friday ended higher(0.71%) than at the beginning of the week but that was probably because the spike in price occurred when the trading opened in NY. It will be interesting to see what happens when trading opens in London. This action strongly suggests that leased gold is being sold to move the price down. If this is true, it also suggests that the Bullion Banks aren't giving up yet. With the POG sitting pennies below the Wanniski's magic 325, I suspect that we can expect a major effort to prevent it from moving up further and further consolidation may be in order. In any event, next week will be interesting. The GMI/POG ratio: On 07/18, the Barron's GMI was 428.04 down significantly from the previous week's 450.66. With the POG also up at 322.90 (07/19), the ratio was down at 1.33. Note that neither the GMI nor the POG reflect the move up in NY on Friday but stock didn't move as much as the POG, so the ratio might not have been impacted very much. The ratio a year previously was 1.14. Cheers, Larry