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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: sciAticA errAticA who wrote (33503)	5/11/2003 6:34:43 PM
From: sciAticA errAticA	Respond to of 74559

"C" (China) Day: A Watershed Event for Gold Jim Sinclair's MineSet May 11, 2003 Twenty days from now, for the first time in the memory of many Chinese citizens, it will be legal to buy, own, store privately and sell gold bullion. You may recall in the mid-70s how the legalization of gold in the US had a profound affect on gold. The US is not now nor was it then a country of savers. Gold as a means of saving was not common to US citizens then nor is it now. The United States is a country of spenders of not only what they have but more than they have. Debt is more common to the US citizen. The Chinese on the other hand are the world's greatest savers. They actually save 40% of their wealth for a rainy day. The Chinese also have very long memories and the demise of their currency in the past is something even children know about. Gold bears make little of this event, saying that because China controls the importation of gold and produces 190 tonnes versus a demand 200 tonnes the net impact will be neutral. Little do these commentators know of gold or the industrious nature of the Chinese. Assuming internal Chinese demand increases, the internal Chinese gold price will come under pressure, perhaps boosting it above the world price. Believe me, gold bullion will find its way into China like ants find their way into an open syrup dispenser. The advent of the freedom to own, store, buy and sell gold for the Chinese citizen is going to have a significant effect on gold's price by absorbing internal production and increasing demand for gold on the open market. Without a doubt, that will help gold rise above $400 per ounce in the not too distant future. There has never been nor will there ever be a national border that prevents smugglers from meeting demand for gold and currencies and making a tidy profit in the process. Did you know that there used to be a submarine that plied the waters of Lake Cuomo between Switzerland and Italy? It took watches and gold to Italy and on the return trip brought cash back from Italy to Switzerland. Financial "crime" was so civilized in those days that the submarine captain had an arrangement with the Italian police that if the submarine came into harm's way there was a signal arranged so a rescue could be launched. Well one day the submarine had a problem and was stuck on the bottom of the Lake Cuomo. The signal was given and the rescue was accomplished. Of course the submarine was no longer a secret. The captain was retired or at least that is what we are told. If you think that borders prevent the arbitrage of gold or currency then speak to Harry Schultz who used to fly a twin engine aircraft up and down the Chinese coastline laden with gold and currency. He was an airborne over-the-counter foreign exchange and gold trader with a great means of getting away in a hurry if someone took exception to his enterprise. Now everyone knows the Chinese are even more enterprising than the Swiss and the Northern Italians but maybe not more than Harry who I have always suspected was at least part Chinese. Ho Harry! You see I know all these old stories. Monte Guild became a money manager after he retired from the American Olympic Down Hill Skiing Team. Monte had a lot of hair in those days but I hear that doing 75 miles an hour plus down a mountain on your head is not too good for the hairline. Now Monte is a staid, conservative, very profitable money manager in a pin stripe suit. You can to if you look behind his beach front house in Malibu and see him surfing. Monte's house used to be on a hill side but you know how things are in Malibu. A mud slide and your hillside home becomes a beach front property or a house boat When a CNN reporter asked a patient in a Baghdad insane asylum why he was there, the man said he'd had himself committed after coming back from the United States. The reporter asked him where he was in the United States. He said he lived in California where all the people were crazy and he wanted to feel at home again. jsmineset.com