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To: yard_man who wrote (182667)	7/23/2002 8:57:59 PM
From: David Zgodzinski	Read Replies (2) \| Respond to of 436258

Here's the end of Prechter's quote . . "A lot of people in 1931 thought that silver would be a hedge against the depression. That’s why they bought it and that’s why it had the rally but, eventually, it went down and finally bottomed with stocks. I think that’s likely to happen to all of the precious metals because today none of them are fixed by any government prices." That's not true. Governments are definitely fixing gold prices. The POG is artificially low because central banks have been selling out their reserves. Otherwise gold mine supply is far from sufficient to meet current demand. I tend to believe that it's stupidity not conspiracy that's been making them sell, but the results are the same -low gold prices that have forced many mines to close in recent years. Central bankers are happily cleaning out their vaults at prices where many miners are losing money. That's like selling oil from the strategic oil reserve at $4/barrel. Central bankers all know that paper money is a ponzi scheme and back in the thirties they were happy to have the metal to back some of it. Now they're so sure of their ability to manage the markets, they think they don't need to bother with gold even as a symbol. Central bank and government reaction to a crisis would be different now compared to what it was then. And the reaction of metal prices should also be different.