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To: benwood who wrote (182394)	7/23/2002 12:27:48 PM
From: lisalisalisa	Read Replies (1) \| Respond to of 436258

I for one would welcome the end of the golds moving inversely to the stock market , perhaps this move will create a de-coupling. The biggest rise in the golds came early in the year when their seemed to be much less of an inverse correlation between the general stock market and gold stocks. As the inverse took hold, the performance of the gold stocks seemed to be adversely affected. Perhaps the "hot" money misread gold as a hedge (historically I remember Heinz saying there really is no relationship between gold rallies and poor stock market performance) and are no becoming frustrated and bailing out, I would see this as a positive. Perhaps though, the golds are reacting to the C and JPM news. Maybe the arrangements made for the energy companies were also done with some of the big hedgers, therefore the whole sector might be selling off in anticipation of some bad news on barrick etc. (this is just speculation on my part). If that was the case, then the non-hedgers and hedgers might decouple even further, which would also be good... or perhaps gold just sux :)

To: benwood who wrote (182394)	7/23/2002 12:36:58 PM
From: patron_anejo_por_favor	Read Replies (3) \| Respond to of 436258

<<I'm surprised this AM that nobody mentioned the golds, I suspect because it looks much worse than expected. HB predicted a drop in the HUI to the upper 90s as I recall as part of one last pullback>> Seems to me what we're seeing now is a generalized flight to liquidity. It's in part due to MuFu redemptions....but given what we've seen in the stocks of C and JPM, there may be some major trouble brewing. I think golds are being sold to take offsetting gains against losses in a lot of portfolios. Same thing happened in the 1987 crash, the XAU plunged from 150 to 90 over the 2 weeks before and after. Afterwards it bounced strongly, nearly recapturing all of the losses by Thanksgiving, 1987. The drop in the POG may be part of the same phenomenon, though it rose a bit on crash day in '87.