There are 6 messages in this issue.
Topics in this digest:
1. John Hathaway: Beardsley Ruml's Road to Ruin, Part 1
From: GATAComm@aol.com
2. Part 2: John Hathaway, 'Beardsley Ruml's Road to Ruin'
From: GATAComm@aol.com
3. Hathaway's analysis is also posted at GoldSeek.com
From: GATAComm@aol.com
4. Peter Brimelow: Gold quietly reaches critical level
From: GATAComm@aol.com
5. Thayer Watkins: 'Episodes of Hyperinflation'
From: GATAComm@aol.com
6. Financial Times discovers that gold isn't quite so dead after all
From: GATAComm@aol.com
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________________________________________________________________________
Message: 1
Date: Mon, 08 Nov 2004 04:32:37 -0000
From: GATAComm@aol.com
Subject: John Hathaway: Beardsley Ruml's Road to Ruin, Part 1
11:19p ET Sunday, November 7, 2004
Dear Friend of GATA and Gold:
John Hathaway, manager of the Tocqueville Gold Fund,
has just written a long analysis of the prospects for
gold and the world financial system, "Beardsley Ruml's
Road to Ruin." Hathaway's work may be especially
satisfying to GATA supporters for quoting from the
speech given to the June meeting of the London
Bullion Market Association in Moscow by Oleg V.
Mozahaiskov, deputy chairman of the Bank of Russia
-- a speech suppressed by the LBMA but liberated by
GATA through an official English translation provided
by the Bank of Russia after much negotiation.
The Tocqueville Internet site seems to have been out
of order most of today but it was operational long
enough for us to copy Hathaway's essay for passing
along to you below, minus its charts, which can be
viewed only when the Tocqueville site resumes
operation.
Hathaway's work, while compelling, is long, so please
forgive its transmission to you in two parts.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Beardsley Ruml's Road to Ruin
By John Hathaway
Tocqueville Funds
www.Tocqueville.com
November 4, 2004
Gold and gold shares have spent the year to date
in a corrective mode. The intense investment ardor
of 2003 has been succeeded by indifference and
skepticism. Gold shares, which are essentially
long-dated options on the gold price, provide the
best barometer of sentiment. In 2002 and 2003
the shares outperformed the metal by a factor of
2:1. This year, they have underperformed, with
gold up 2 percent and the shares down 9 percent
(basis XAU as of November 2, 2004.) Investment
flows into U.S. gold mutual funds have been
subdued compared to 2003 and 2002, and are
down more than 60 percent.
As always, the key investment questions are:
1) where are we on the road map of the secular
bull market for gold; 2) are we in fact still on the
road or has it come to an end; and 3) what is the
condition of the fundamental forces behind the
market direction?
To alleviate any suspense, it is our view that we
are still in the early stages of a bull market for
gold and a bear market for financial assets,
including (especially) the U.S. dollar. Our view on
1 ought to dispatch any need to discuss 2, but it
might be worth considering what to look for in
judging the bull market in gold to be over. In
general, the answer to 3 is that the conditions
supporting a rising price of gold are not only
intact but, if possible, stronger than ever.
... A Brief Review of the Fundamentals
Supply and demand factors remain positive and
compelling. One might think that after a five-year
run in the gold price from $250 to $400+, mine
supply would be surging and demand would have
receded. In fact, the opposite is true. Mine supply,
at 2,500 tonnes (metric), seems likely to decline
over the next three to five years. This would likely
be true even if the gold price traded up $100/oz.
and remained on this hypothetical new plateau.
Demand is robust.
Gold mining is an intrinsically hardscrabble
proposition. It is rarely a good business. Rising
costs have more than kept pace with the rising
gold price. In South Africa, producer of 14 percent
of the world's gold, an overvalued currency has
resulted in a declining gold price in local currency
terms, contracting margins, and shutdowns of
marginal mines. Elsewhere, important cost factors
have pinched returns on sales and capital. Energy
costs have seriously eroded margins for open-pit
mine operations worldwide. Equipment and capital
goods price increases have drained cash not only
for existing operations but have raised the ante for
new mines on the drawing board. Drill rigs are hard
to find, skilled operators even more so, and assay
lab backlogs are at record levels. The industry,
broadly ignorant of the need to generate returns in
excess of its cost of capital, has high-graded
existing mines, overproduced relative to reserve
development, continues to squander capital, and
persists in opting for dilutive financings that
undermine the interests of shareholders (thereby
turning away all but the most speculative investors.)
Poor returns on capital and value-destroying mergers
have caused significant cutbacks on exploration
spending, which remains 40 percent below the recent
peak of $1.7 billion in 1997. The efforts of
environmental NGOs, emboldened by the financial
support of tree-hugging billionaires, are adding costs
and challenges unknown 10 years ago for existing and
proposed mines. The lead time between discovery and
first output for major new mines is easily measured in
decades.
Demand for gold jewelry remains strong despite higher
prices. According to Goldfields Mineral Services,
global consumer demand rose 11 percent in terms of
tonnage and 25 percent in dollars in the second
quarter versus last year. The Indian subcontinent, the
largest market, will purchase 880 tonnes this year, a
rise of 10 percent according the MMTC, the Indian
parastatal agency that tracks commodity imports.
The pattern of Indian buying, which accounts for 19
percent of world jewelry consumption, has been to
absorb gold on declines but not to drive prices on the
upside. The financial market metaphor would be that
of intelligent accumulation. India, though significant
in itself, exemplifies the increased appetite for gold
that goes along with Third World economic growth.
Elimination of import tariffs in China and the
organization of the Shanghai Gold Exchange
promise to activate demand in a potentially large
market that has been a non-factor for the past
decade.
Central bank bullion bars and new mine output are
sold for cash, only to be melted down in refineries
and reconstituted into fabricated shapes for jewelry.
In this manner, gold disappears into the dowries of
Asian families and is no longer for sale. Physical
buying of this sort not only absorbs supply; it
places gold beyond the grasp of financial traders
and issuers of derivatives such as gold-linked notes.
These traders are the equivalent of gold price
bookies with little idea of the internal fundamentals
of their bets and absolutely no idea of the widening
gap between the liquidity of gold traded as paper
and the real thing.
There are two factors driving demand for physical
gold. The first is the growing prosperity of the
emerging world. The second is the rising level of
commodity prices, which acts as an important
cash-flow generator for segments of the globe
where derivatives are unknown or distrusted.
While Third World jewelry demand sops up nearly
all newly mined gold every year, investment
demand also shows signs of awakening. Investment
demand for gold as an alternative asset has been
dormant for 25 years. Awakened, it has the potential
to swamp the supply of physical gold, which in
financial market terms is similar to a microcap
stock.
We estimate that the market cap of global gold to
be approximately $1 trillion at current prices,
assuming that all central bank gold is for sale.
Since all central bank gold is not for sale, the real
market cap is approximately half of this figure.
Global financial assets approximate $70-$75 trillion.
Even a small diversion of one tenth of 1 percent from
financial assets into gold would equal two years of
mine supply. It is a trade that can't be done at current
prices.
It will be interesting to see what becomes of the new
gold ETF (exchange-traded fund) proposed for New York
Stock Exchange listing. The ETF must be backed by
physical gold, to be held on deposit with HSBC in
London. It is our belief that, in time, the ETF will tap
investment demand that until now has steered well
clear of the sector. An ETF launched in 2003 in
London has achieved a market cap of $739 million
and is backed by 1.8 million ounces (as of Oct. 19).
A NYSE listed gold-backed security, in our opinion,
will be more widely accepted. It will be followed by
listings on other major markets.
Conservative investors, both institutional and individual,
have shied away from mining stocks for good reason.
They are risky and speculative, even if they do provide
dynamic exposure to rising gold prices. Institutions
loaded with overvalued equities and bonds would do
well to consider the non-correlated benefits of even
a small commitment to physical gold, for the sake
of their beneficiaries who will need spending power
20 to 30 years from now. Individuals and institutional
portfolio managers may well come to consider the
ETF as a more effective way to protect capital than
by simply raising cash. The ETF has the potential
to add several hundred dollars to the gold price, over
time, because it will facilitate access to gold for a
broad range of investors previously excluded due
to inexplicably archaic mechanisms.
And what of central bank selling, the long-standing
hobgoblin for gold investors?
In short, there are signs that overt official sector
selling may be abating. Although the new agreement
governing central bank sales (Central Bank Gold
Agreement, March 8, 2004) permits 2,500 tonnes to
be sold over the next five years, only 1,900 tonnes
has been spoken for. The UK has completed its
sales and Swiss have a residual of 130 tonnes. The
Netherlands has a small residual of 65 tonnes from
its original program of 300 tonnes. According to
Gold Fields Mineral Services, it is "highly improbable
that, in practice, close to two-thirds of this quantity
would be mobilized for sale" over the next five years.
Central bank attitudes toward gold appear to be
warming. There is official sector buying in the Persian
Gulf. Argentina has purchased 40 tonnes of gold this
year, possibly as defensive move against aggressive
creditor actions outside the country. Official sector
antipathy to the dollar is spreading. A scathing June
2004 review of the "dollar hegemony" by Oleg V.
Mazhaiskov, deputy chairman of the Russian central
bank, is undoubtedly on the minds of others who feel
more constrained to speak freely:
"The world has come to a paradoxical situation in
which the creditor countries are more concerned with
the fate of the dollar than the U.S. authorities
themselves are. Thus the evolution of the U.S. dollar's
reserve role in recent years has given ground to some
quite pessimistic forecasts, based on rational
economic theory. No wonder that the number of people
who have held assets in dollars and now wish to
diversify them partly into gold -- the traditional shelter
from inflation and political adversity -- is steadily
growing."
Central bank supply, required to balance the market at
current levels, is waning. Increased investment demand,
a wider appreciation on the constraints of new mine
supply, and a decline in central bank selling are the
stuff of a compelling commodity story. But there is
much more to this story than the pedestrian summation
of supply and demand factors.
... Enter Beardsley Ruml
The DNA of financial instability is embedded in human
nature. Manic highs, gut-wrenching lows, expansive
assumptions as to future returns, catatonic withdrawal
into risk avoidance, and a predisposition toward optimism
or skepticism all originate in the psyche. They are
magnified, reinforced, and institutionalized by crowd
behavior. The ebb and flow of the tide of credit reflects
the rhythmic cycling of popular beliefs and fears over
decades.
The credit cycle explains how the mythic business
heroes and investment icons of one year are
transformed into the laughingstock and felons of
another. It cannot be harnessed by econometric
exactitude to suit the aims of public policy, because it
is a fundamental expression of humanity at work in the
financial marketplace. Still, for most politicians, the
lesson learned from the 1930s depression was that an
expanded government role could modify market
outcomes to benefit society.
It is in the context of social engineering that the removal
of gold from its historical role as the official basis for
money, the substitution of fiat money as the foundation
for the international credit system, and the consequent
mispricing of gold must be understood. Thirteen years
after President F.D. Roosevelt suspended private
transactions is gold, the chairman of the New York
Federal Reserve penned an article for American Affairs
titled 'Taxes for Revenue Are Obsolete.' Beardsley
Ruml, advocating the elimination of the corporate
income tax, observed:
'The necessity for a government to tax in order to
maintain both its independence and its solvency is true
for state and local governments, but it is not true for a
national government. Two changes ... have substantially
altered the position of the national state with respect to
the financing of its current requirements.
"The first of these changes is the gaining of vast new
experience in the management of central banks. The
second change is the elimination, for domestic
purposes, of the convertibility of the currency into
gold." (American Affairs, January 1946)
In these few sentences, Ruml anticipates the 60-year
transformation of the Federal Reserve from a traditional
central bank into a central planning agency. Ruml, as
did many other postwar leaders, mapped out an
intellectual framework for interventionist economic
policies designed to eliminate the pain of bad economic
outcomes while presumably allowing for open-ended
upside. From that point on, the only thing that has
changed is the evolution and perfection of technique.
Ruml could never have imagined the gyrations by which
the future Fed would slay any and all dragons threatening
financial stability. Writing gold out of the monetary script,
as foreshadowed in these remarks, was the magic formula
by which the levers of credit would be transferred from the
markets to the politicians.
The U.S. dollar, freed from the constraint of gold backing
in 1971, became the pliable foundation for international
credit. It rose geometrically in quantity to become the
essential fuel of global economic growth. Owing to surfeit,
it is on the brink of global distrust. Because of its pivotal
role, few dare to speak of it honestly as did Mr.
Mazhaiskov. That is because it is more widely held, it
seems, than Internet stocks at the top. Those with large
positions can ill afford to point out its shortcomings.
Global trade has been lubricated by universal acceptance
of the currency. Our Asian trading partners, needing dollars
to finance their own economic growth, find it convenient to
ignore the risks of dollar devaluation. However, Fed officials
seem to be siding with Mr. Mazhaiskov.
George McTeer, outgoing president of the Dallas Fed, said
on Oct. 8, 2004: "Theoretically, someday ... the flows will
turn against us and there will be a crisis that will result in
rapidly rising interest rates and a rapidly depreciating
dollar."
This is quite a statement from a regional Fed president. It
is amazing that it was all but ignored in the press.
What is a dollar worth?
It is too bad that there is no obvious answer. As we
have seen, many thoughtful observers have suggested,
and very persuasively, that it is overvalued and that
this overvaluation is unsustainable. Some counter that
the dollar's value in terms of alternative currencies has
been fairly stable, but closer examination of the yen
and euro leads to troubling questions as to their
intrinsic worth. In a world of fiat currencies with no
objective basis for value, the potential for economic
misjudgments seems limitless.
The value of one single, solitary U.S. dollar is
impossible to determine. Purchasing power parity,
exchange rate versus other currencies, and
purchasing power as defined by the Consumer Price
Index do not hold the answer. All three benchmarks
are flawed. These valuation measures are subject to
tinkering by governments to suit their policy aims.
We have suggested as much in "The Real Value of a
Dollar" (Feb. 14, 2004), as have many others:
"In the absence of a gold standard, there is no way to
protect savings from confiscation through inflation.
There is no safe store of value. If there were, the
government would have to make its holding illegal, as
was done in the case of gold." ("Gold and Economic
Freedom" by Alan Greenspan, 1966.)
The inability of players in the economic realm to judge
the value of the unit of exchange categorically leads
to mistakes and imbalances that must be rectified in
due course. Fundamental analysis of return on
investment, whether for family savings or corporate
spending, is meaningless in the absence of an
objective and fixed unit value of return, or numeraire.
Economist David Ricardo reasoned that a fixed and
objective unit of account was essential if "one wish(ed)
to make interlocal or intertemporal comparisons (in
the) problem of measuring value." For multinational
producers of goods in China destined for the United
States, a critical factor governing the return on capital,
which cannot be known today, is the future exchange
rate, which dictates the number of dollars returned for
a product sold. While there is always exchange rate
risk in cross-border trade, the risk would seem
especially pronounced in the case of China, which
seems to be the universal justification for almost any
investment proposition.
[MORE]
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Message: 2
Date: Mon, 08 Nov 2004 04:39:21 -0000
From: GATAComm@aol.com
Subject: Part 2: John Hathaway, 'Beardsley Ruml's Road to Ruin'
Imbalances must proliferate on artificial suppositions.
Asset values are marked to market in the absence of
an objective standard of value. Credit is extended on
the same false pretenses. Returns are illusory; the
security of credits a fiction. It is the sort of thing that
can happen, unchecked, only in a regime of central
planning.
The misdirection of capital flows in the current global
economy is illustrated by the U.S. trade deficit, the
U.S. budget deficit, the 46 percent holding of U.S.
treasuries by foreign investors, the lack any credible
attempt to deal with future entitlement claims, the
pattern of aberrant behavior in housing finance and the
resulting bubble in housing prices, the disconnect
between shrinking bond yields and rising commodity
prices, negative real interest rates, the overweighting
of financial stocks in the S&P 500 (20.1 percent), the
bloated 38 percent share of total after tax-profits
generated by financial firms, multi-year interest-free
new car loans, the reckless pursuit of yield in the junk
bond market, the continued overvaluation of equity
markets, the inundation of the hedge fund sector by
capital flows desperately seeking returns,
overutilization of convergence strategies, the paucity
of returns for investment strategies across the board,
the buildup in corporate cash, the excessive
indebtedness of the American consumer, and the glut
of golf courses, casinos, and SUVs. This is only the
short list.
The Treasury Department reported on Oct. 18, 2004,
that net monthly capital inflows from the rest of the
world declined for the sixth time this year. The 50
percent decline in net private investment from a year
ago was more than offset by a rise in Asian central
bank buying. Few would disagree that the obvious
support of the dollar by foreign central banks has a
finite life. These are bad signs for the currency, but
the financial markets appear to exhibit little concern.
The chart below shows that foreign private entities
have drastically reduced their purchases of U.S.
paper and that central banks have more than taken
up the slack. Private companies and investors, not
constrained by policy objectives, are turning in their
dollars to their central bankers in exchange for local
currency. Once they held onto the marginal dollar for
its appreciation potential. Foreign central banks, on
the other hand, are dutifully fighting the market to
keep their currencies undervalued to the dollar.
[Chart at www.Tocqueville.com]
How will the exit of the dollar play out? There are
thoughtful arguments on both sides of the issue of
deflation versus inflation. A serious erosion of the
dollar's international exchange value will force the
United States to become self-financing. Our trading
partners do not need to reject the dollar outright but
merely to reduce their buying on the margin as has
been the case over the last several months. As of
this writing the trade-weighted dollar is at the low end
of its range of three years. The dollar has been
against the ropes before and has managed to rally.
It will probably rally again, but within the context of a
well-established downtrend. Aside from a countertrend
rally, a probe to new lows would trigger higher interest
rates, lower equity market valuations, and higher inflation,
as the president of the Dallas Fed has observed.
Dollar weakness could prove stimulative to the economy
in the short run as our hollowed-out industrial base is
called upon to produce what we can no longer afford to
buy abroad. Corporate earnings might rise sharply amid
a contraction of valuations. In short, this would be
something of a replay of the stagflation of the 1970s
triggered by the unwillingness of foreign bankers to
finance our deficits in 1971 and again in 1979 in the
absence of interest rate and exchange rate
adjustments.
The difference between the 1970s and today is that
the magnitude and proportion of our foreign
indebtedness is far greater.
The all-too-popular bearish view of the dollar deserves
a contrarian response.
The deflationist camp notes that there is global
overcapacity owing to direct investment driven by the
well-known arbitrage of labor rates between Asia and
the developed economies. Wages and prices are
capped as long as our Asian trading partners choose
to finance our debt at current exchange rates. The
misallocation of capital on a grand scale has been
financed by a buildup of debt on an even grander scale.
The debt position functions as a synthetic short against
the dollar, which will drive up its international exchange
value as business returns falter because excess
capacity drives prices lower and forces widespread
repayment of dollar-denominated debt. A flight to safety
results in miniscule government bond yields, exploding
credit spreads, and imploding capital markets.
Beware that the preponderance of bearish opinion on the
dollar at this moment could signal a conviction-shattering
rally. The obvious peril to the dollar may have been
sufficiently discounted for the moment, or may still be too
distant to preclude a fake-out countermove.
To many, the possibility of a rising gold price in a
deflationary setting is unlikely. For example, in a recent
article titled "Gold is not Signaling Inflation or Deflation .
Yet" published Oct. 18 by Bianco Research LLC, the writer
states:
"Gold's nominal price changes are a function of the
relationship between the expected rate of inflation and the
short-term interest rate costs of carrying inventory, plus
or minus changes in the supply/demand balance."
The accompanying chart in the article goes back only
to 1997. This sort of thinking equates the symptom of a
general fall in the level of prices with deflation but
overlooks the root causes and dynamics of a
deflationary meltdown. It is easy to think that if all
commodity prices are falling, then gold must also. The
article later states: "If the price of gold starts to fall
more rapidly than the dollar index increases, deflationary
pressures exist and an appropriate policy response is
indicated."
The direction of the general price level cannot be
confused as inflation or deflation of credit. Secular credit
cycles are beyond the control of central bankers, although
central banks can certainly augment the process of credit
expansion if they are already under way. A general fall in
prices can occur quite normally during a period of economic
growth that is not deflationary. However, falling prices in a
deflation are only a side-effect of a general paralysis of
credit.
The more telling symptoms are very low nominal interest
rates, high real interest rates, and failing household and
corporate credits. Investor behavior shifts from risk taking
to risk avoidance.
In a secular credit contraction, such as we are in the midst
of at the moment, the gold price rises as a measure of the
demand for safety. Central bank attempts to counter the
contraction take the form of excessive paper issuance,
which for a time can inflate asset values due to surplus
liquidity. Ultimately, the market sees these actions for what
they are, monetary debasement. While nominal price levels
may rise in response, as in the 1970s, economic activity
stagnates.
In our view, both inflationary and deflationary scenarios
explain how and why the gold price will rise, not only in
dollars but in all currencies. The dollar's predicament
allows for more than one plausible outcome. Our contrarian
instincts at first guide us toward the deflationary camp,
since it seems under-represented in discussions of this
sort. But the deflationary camp omits an important
consideration, which in our view makes a precise repeat
of the 1930s impossible.
That factor is best summed up in the notion of Beardsley
Ruml: Sophisticated central bankers and enlightened
government policies can always create desirable
outcomes. Disrespect for market outcomes is not
limited to central bankers and policy makers. It is integral
to the post-World War II social compact. Dollar trashing
therefore exists not only as a notional last resort for
desperate policy makers, but also constitutes an option
that would be widely applauded.
According to Bob Hoye of Chartworks:
"The purpose of sound money has always been to
'manage' the ambitions of the state. ... In 1900, all levels
of government were taking only 10 percent of GDP and
the public was skeptical about big government. In the last
part of the 20th century, the government take was
approaching 50 percent and the public had visions of
government as a wish machine." (Address to the Committee
for Monetary Research and Education, October 2004.)
Acceptance of the dollar as the global reserve currency is on
thin ice. As with any overvalued security, there is no margin
for anything less than perfection. In the instance of the dollar,
perfection may be defined as uninterrupted and unthreatened
economic growth, consensus belief in the same, low reported
inflation, stable financial markets, political tranquility, and a
restoration of international harmony.
... Misguided Faith
What is the explanation for the persistence of investment
confidence in the face of transparent danger to the status
quo implied in dollar devaluation?
Possible answers include wishful thinking, ignorance, habit,
selective inputs, or a combination. Another possibility is that
there is nothing to worry about at all. The five-year rise in the
price of gold can be taken as a warning or it can be
dismissed. A benign interpretation, non-threatening and
consistent with investment complacency, is that the rise is
based strictly on commodity related supply and demand
factors. It can be argued that gold's dollar price has
underperformed other commodities, especially oil. In
deflated dollar terms, today's $400 handle is only $200
in 1980 terms. In 1980 it peaked over $800, or $1,600 in
today's money. Gold is simply tagging along in the
slipstream of oil, copper, and nickel.
The complacent world view holds that financial assets
will normally generate positive returns, that the dollar
doesn't matter, that the economy is now and always
can be wisely managed, and that in old age, sickness,
and travail there will always be a government backstop
for individuals, businesses, and investors. That view
appears to be widely shared in financial markets.
The notion that the dollar and financial assets in general
are in the early stages of a multi-year decline is alien
and inconceivable. If it were otherwise, the dollar price
of gold would not be $400. It would have at least three
zeros before the decimal point.
When does reality sink in?
Past behavior of the financial markets suggest that the
lags are considerable. Timing markets is hazardous.
Let the tape do the talking, as price is always the best
educator. A visitor from another planet might hypothesize
that investment thinking broadly anticipates financial
markets. Reality is quite the opposite. The explanation lies
in crowd psychology and human behavior, not rational
analysis:
"The sense of security more frequently springs from habit
than from conviction, and for this reason it often subsists
after such a change in the conditions as might have been
expected to suggest alarm. The lapse of time during which
a given event has not happened is, in this logic of habit,
constantly alleged as a reason why the event should never
happen, even when the lapse of time is precisely the
added condition which makes the event imminent." (From
"Silas Marner" by George Eliot, as quoted by David
Richards in Barrons, Sept. 20, 2004.)
We conclude with ardent conviction, the more so for our
isolation, that the dollar's role as the global reserve
currency has run its course. The transition to a new
basis for international credit will be lengthy and
difficult.
The repercussions of a transition are not reflected in the
financial markets. For this reason, gold is inadequately
priced. The best strategy, under these circumstances,
is to own as much as possible of what so few have in
their possession, physical gold. While gold mining shares
will perform well along the way (and should certainly be
owned), they are much easier to manufacture than the
metal is to extract. The same is true for derivatives, or
paper gold.
A private banker recently told us how he had protected
his clients with gold-indexed notes issued by his
employer, and that this practice was widespread in his
department. We hear similar stories from Asian and
European investors.
No institution contemplating gold in four digits would
issue such paper.
It is difficult to understand how a fiduciary, charged with
a responsibility to protect the purchasing power of
beneficiaries, not for tomorrow or next year, but for
generations, could avoid inclusion of this asset class. At
the very least it should appeal to the growing numbers of
TIPS investors -- Pimco for example -- who have come to
distrust the CPI as a measure of inflation.
Any asset allocation analysis that does not incorporate
gold, or that lumps it together with other commodities,
is pointless. Since 1990 the correlation between oil and
gold has been .108, according to our trusty Bloomberg.
The correlation between copper and gold has been
stronger at .738. On the other hand, gold showed virtually
no correlation with the S&P (.039) or the trade-weighted
dollar (-.185), while oil correlated in a moderately positive
way (.311) and (.279) and copper in a strongly negative
way (-.575) and (-.687). What does all this mean?
Absolutely nothing. The Bloomberg data covers only a
15-year span of moderate inflation, a statistically
insignificant blip in the context of financial market
history. Data from 1930, not captured by Bloomberg,
would show that financial assets and commodities were
highly correlated, since both imploded against soaring
gold prices.
When will the bull market in gold, still in stealth mode,
run its course? The first step would be a recognition,
on the part of the financial media, that a bull market
has been in place for some time. The second step
would be for the same providers of financial
misinformation to predict more of the same and explain
why.
Still, much more than a supportive financial media would
be necessary to declare that the bullish run in hard
assets is history. The essential component of a secular
top for gold would be an equivalent low in financial assets.
Such lows over the past 100 years coincided with the
culmination of a financial crisis eliciting extreme response
from the government. In those instances, investor
expectations were crushed and remained so for several
years.
In 1934 the Roosevelt administration increased the gold
price to $35 per ounce, an overnight rise of 69.3 percent,
the compensation required to persuade private owners to
part with the metal. From 1980-1982 the Volcker Fed
increased nominal interest rates to double digits and
produced a recession, a feat of political willpower that
seems unlikely to be matched for several years.
With the S&P 500 trading at 19 times trailing earnings
and yielding 1.7 percent, optimism reigns. For the
government and its policymakers of all party persuasions,
it is business as usual.
It is not necessary or possible to know the headlines that
will accompany the onset of a winter in the financial
markets. The passage of seasons is ordained in all things,
Beardsley Ruml and his co-visionaries notwithstanding. The
peak in the current gold bull market will coincide with the
end of the road for elitist social engineering, the government
wish machine, and the hoax of unlimited dollar issuance.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
jsmineset.com
cbs.marketwatch.com
mineweb.com
gold-eagle.com
kitco.com
usagold.com
goldseek.com
goldreview.com
capitalupdates.com
dailyreckoning.com
goldenbar.com
silver-investor.com
thebulliondesk.com
sharelynx.com
mininglife.com
financialsense.com
goldensextant.com
goldismoney.info
howestreet.com
depression2.tv
moneyfiles.org
howestreet.com
minersmanual.com
a1-guide-to-gold-investments.com
goldcolony.com
miningstocks.com
mineralstox.com
freemarketnews.com
321gold.com
silverseek.com
investmentrarities.com
kuik.com
(Korelin Business Report -- audio)
plata.com.mx
(In Spanish)
plata.com.mx
(In English)
resourceinvestor.com
Subscription sites:
lemetropolecafe.com
hsletter.com
investmentindicators.com
Eagle Ranch discussion site:
os2eagle.net
Ted Butler silver commentary archive:
investmentrarities.com
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
blanchardonline.com
Centennial Precious Metals
3033 East 1st Ave., Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
gata.org
By GoldMoney:
goldmoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled "GATA."
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
-END-
________________________________________________________________________
________________________________________________________________________
Message: 3
Date: Mon, 08 Nov 2004 04:45:51 -0000
From: GATAComm@aol.com
Subject: Hathaway's analysis is also posted at GoldSeek.com
11:44p ET Sunday, November 7, 2004
Dear Friend of GATA and Gold:
You can also find John Hathaway's essay,
"Beardsley Ruml's Road to Ruin," and its
chart work at GoldSeek.com here:
news.goldseek.com
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
jsmineset.com
cbs.marketwatch.com
mineweb.com
gold-eagle.com
kitco.com
usagold.com
goldseek.com
goldreview.com
capitalupdates.com
dailyreckoning.com
goldenbar.com
silver-investor.com
thebulliondesk.com
sharelynx.com
mininglife.com
financialsense.com
goldensextant.com
goldismoney.info
howestreet.com
depression2.tv
moneyfiles.org
howestreet.com
minersmanual.com
a1-guide-to-gold-investments.com
goldcolony.com
miningstocks.com
mineralstox.com
freemarketnews.com
321gold.com
silverseek.com
investmentrarities.com
kuik.com
(Korelin Business Report -- audio)
plata.com.mx
(In Spanish)
plata.com.mx
(In English)
resourceinvestor.com
Subscription sites:
lemetropolecafe.com
hsletter.com
investmentindicators.com
Eagle Ranch discussion site:
os2eagle.net
Ted Butler silver commentary archive:
investmentrarities.com
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
blanchardonline.com
Centennial Precious Metals
3033 East 1st Ave., Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
gata.org
By GoldMoney:
goldmoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled "GATA."
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
-END-
________________________________________________________________________
________________________________________________________________________
Message: 4
Date: Mon, 08 Nov 2004 13:31:21 -0000
From: GATAComm@aol.com
Subject: Peter Brimelow: Gold quietly reaches critical level
By Peter Brimelow
CBS.MarketWatch.com
Monday, November 8, 2004
cbs.marketwatch.com
2D4BD2%2D9C58%2DDEB60E3B555E%7D&siteid=mktw&dist=
NEW YORK -- Gold's spot price closed at $434.30 on
Friday -- its highest level since December 1988. It's
been trending relentlessly upward since May.
But the Hulbert Gold Newsletter Sentiment Indicator,
which reflects the average recommended exposure
to the gold market among a subset of gold-timing
letters tracked by the Hulbert Financial Digest, is
only at 57.41 percent. It has not moved for some time.
This stolidity is in dramatic contrast to the Hulbert
Stock Newsletter Sentiment Index (HSNSI), which
reflects the average equity market exposure among
a subset of short-term market-timing newsletters.
As of Friday night, the HSNSI stood at 55.07 percent
-- up from 48.9 percent the day before and 27.9
percent in September.
Mark Hulbert has concluded that on a contrarian
analysis, this stampede of bullishness suggests
that the post-election stock rally is overdone.
But he doesn't feel that way about the gold rally. It
just hasn't attracted the same enthusiasm from the
letters monitored by the HFD. So -- Hulbert tells
me -- it may go on.
Similarly, the gold stock indexes -- the Amex Gold
Bugs index (HUI) and the Philadelphia Gold and
Silver Index (XAU) -- are well below their recent highs.
Over the weekend, the Australian gold service The
Privateer.com came up with this quote:
"'Interest is very limited,' sighs Caesar Bryan, manager
of the Gabelli Gold Fund (GOLDX), who ruefully
concedes to being the longest continuously-serving
manager of gold funds in North America. Cash flow is
light. 'Anecdotally I hear this is true across the group.'"
The Privateer believes gold is in a major bull market.
A close above $440 would signal a breakout.
And then there's the Elliott Wave forecasters grouped
around Robert G. Prechter. Paradoxically, Prechter is
a long-term gold bull. But he has been calling for a
savage short-term bear market in gold -- unless it
sends a clear signal that would cause him to review
his technical work. That signal used to be "a close
beyond $422."
Several readers have been interested to know whether
Prechter and his lieutenants at the Elliot Wave
Financial Forecast accept that this signal has now
been given.
Prechter seems to have quietly forgotten about $422.
This is not necessarily a gotcha! offense -- the ultimate
test is whether an adviser is right, not how consistent
his arguments are.
Still, the latest Elliott Wave Financial Forecaster says:
"The rally from the May 10 low of $375.70 has carried
higher than anticipated, but the overlapping waves of
the rise are clearly corrective. ... Gold should be at a
top. A downward reversal would be the start of Wave
3, a multi-month decline. As previously noted, a close
above the April 1 high [$436.50 basis December] would
cloud the picture and require a re-examination of the
wave count."
I read this to mean that futures have to close above the
April intraday high.
It hasn't happened yet. But it's getting very close.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
jsmineset.com
cbs.marketwatch.com
mineweb.com
gold-eagle.com
kitco.com
usagold.com
goldseek.com
goldreview.com
capitalupdates.com
dailyreckoning.com
goldenbar.com
silver-investor.com
thebulliondesk.com
sharelynx.com
mininglife.com
financialsense.com
goldensextant.com
goldismoney.info
howestreet.com
depression2.tv
moneyfiles.org
howestreet.com
minersmanual.com
a1-guide-to-gold-investments.com
goldcolony.com
miningstocks.com
mineralstox.com
freemarketnews.com
321gold.com
silverseek.com
investmentrarities.com
kuik.com
(Korelin Business Report -- audio)
plata.com.mx
(In Spanish)
plata.com.mx
(In English)
resourceinvestor.com
Subscription sites:
lemetropolecafe.com
hsletter.com
investmentindicators.com
Eagle Ranch discussion site:
os2eagle.net
Ted Butler silver commentary archive:
investmentrarities.com
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
blanchardonline.com
Centennial Precious Metals
3033 East 1st Ave., Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
gata.org
By GoldMoney:
goldmoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled "GATA."
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
-END-
________________________________________________________________________
________________________________________________________________________
Message: 5
Date: Tue, 09 Nov 2004 00:16:19 -0000
From: GATAComm@aol.com
Subject: Thayer Watkins: 'Episodes of Hyperinflation'
7:08p ET Monday, November 8, 2004
Dear Friend of GATA and Gold:
Thanks to GATA supporter Mark Lundeen for calling
attention to "Episodes of Hyperinflation" by San
Jose State University economics professor Thayer
Watkins. Its accounts are fascinating, pathetic,
and tragic. But before anyone starts feeling
superior to the people whose lives were devastated
by government's mismanagement of monetary systems
throughout history, remember that the governments
involved probably differed from the U.S. government
of today in only one respect: They didn't happen
to control the world reserve currency, and thus
couldn't put the whole world at risk of
hyperinflation as well.
You can find "Episodes of Hyperinflation" here:
www2.sjsu.edu
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
jsmineset.com
cbs.marketwatch.com
mineweb.com
gold-eagle.com
kitco.com
usagold.com
goldseek.com
goldreview.com
capitalupdates.com
dailyreckoning.com
goldenbar.com
silver-investor.com
thebulliondesk.com
sharelynx.com
mininglife.com
financialsense.com
goldensextant.com
goldismoney.info
howestreet.com
depression2.tv
moneyfiles.org
howestreet.com
minersmanual.com
a1-guide-to-gold-investments.com
goldcolony.com
miningstocks.com
mineralstox.com
freemarketnews.com
321gold.com
silverseek.com
investmentrarities.com
kuik.com
(Korelin Business Report -- audio)
plata.com.mx
(In Spanish)
plata.com.mx
(In English)
resourceinvestor.com
Subscription sites:
lemetropolecafe.com
hsletter.com
investmentindicators.com
Eagle Ranch discussion site:
os2eagle.net
Ted Butler silver commentary archive:
investmentrarities.com
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
blanchardonline.com
Centennial Precious Metals
3033 East 1st Ave., Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
gata.org
By GoldMoney:
goldmoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled "GATA."
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
-END-
________________________________________________________________________
________________________________________________________________________
Message: 6
Date: Tue, 09 Nov 2004 02:08:13 -0000
From: GATAComm@aol.com
Subject: Financial Times discovers that gold isn't quite so dead after all
9p ET Monday, November 8, 2004
Dear Friend of GATA and Gold:
Seven months ago the Financial Times bade gold
good riddance, so how, Resource Investor's Tim
Wood asks, can the paper miss the irony of its
acknowledging gold's seeming comeback the
other day? You can find Wood's commentary
here:
resourceinvestor.com
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
----------------------------------------------------
To subscribe to GATA's dispatches, send an e-mail to:
gata-subscribe@yahoogroups.com
To unsubscribe, send an e-mail to:
gata-unsubscribe@yahoogroups.com
----------------------------------------------------
RECOMMENDED INTERNET SITES
FOR DAILY MONITORING OF GOLD
AND PRECIOUS METALS
NEWS AND ANALYSIS
Free sites:
jsmineset.com
cbs.marketwatch.com
mineweb.com
gold-eagle.com
kitco.com
usagold.com
goldseek.com
goldreview.com
capitalupdates.com
dailyreckoning.com
goldenbar.com
silver-investor.com
thebulliondesk.com
sharelynx.com
mininglife.com
financialsense.com
goldensextant.com
goldismoney.info
howestreet.com
depression2.tv
moneyfiles.org
howestreet.com
minersmanual.com
a1-guide-to-gold-investments.com
goldcolony.com
miningstocks.com
mineralstox.com
freemarketnews.com
321gold.com
silverseek.com
investmentrarities.com
kuik.com
(Korelin Business Report -- audio)
plata.com.mx
(In Spanish)
plata.com.mx
(In English)
resourceinvestor.com
Subscription sites:
lemetropolecafe.com
hsletter.com
investmentindicators.com
Eagle Ranch discussion site:
os2eagle.net
Ted Butler silver commentary archive:
investmentrarities.com
----------------------------------------------------
COIN AND PRECIOUS METALS DEALERS
WHO HAVE SUPPORTED GATA
AND BEEN RECOMMENDED
BY OUR MEMBERS
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
blanchardonline.com
Centennial Precious Metals
3033 East 1st Ave., Suite 403
Denver, Colorado 80206
www.USAGold.com
Michael Kosares, Proprietor
US (800) 869-5115
Canada 1-800-294-9462
European Union 00-800-2760-2760
Australia 0011-800-2760-2760
cpm@usagold.com
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
Gold@gwe.net
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
harvey@eldoradogold.net
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
gwestgaard@investmentrarities.com
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
leecoins@aol.com
Miles Franklin Ltd.
3015 Ottawa Ave. South
St. Louis Park, Minn. 55416
1-800-822-8080 / 952-929-1129
fax: 952-925-0143
milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
info@mocoin.com
314-965-9797
1-800-280-9797
mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
Metalguys@aol.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
FiGoldstein@swissamerica.com
----------------------------------------------------
HOW TO HELP GATA
If you benefit from GATA's dispatches, please
consider making a financial contribution to
GATA. We welcome contributions as follows.
By check:
Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, CT 06043-7541
USA
By credit card (MasterCard, Visa, and
Discover) over the Internet:
gata.org
By GoldMoney:
goldmoney.com
Gold Anti-Trust Action Committee Inc.
Holding number 50-08-58-L
Donors of $750 or more will, upon request,
be sent a print of Alain Despert's colorful
painting symbolizing our cause, titled "GATA."
GATA is a civil rights and educational
organization under the U.S. Internal Revenue
Code and contributions to it are tax-deductible
in the United States.
-END- |
