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Gold/Mining/Energy : At a bottom now for gold? -- Ignore unavailable to you. Want to Upgrade?

To: mike timoranszky who wrote (898)	11/14/1997 12:21:00 PM
From: Eakole	Read Replies (2) \| Respond to of 1911

Hi Mike, In answer to your question I offer the following recollections of past GOLD Price Declines followed by a guess as to where we are heading. First: Stock Markets usually work in anticipation of changes by a margin of 6 months. That is, if there is a price change, the reason will usually become public knowledge six months after that change. This explanation is not applied to events described as <Acts of GOD>. Second: In times of anticipated financial crisis, as well as during those moments, the liquidation of assets is the normal procedure in order to maintain solvency. I remember when the Japanese Stock Market started its plunge from 40,000 to 15,000 a gold trader confided to me that a Japanese customer just liquidated $50,000 worth of Gold Coin in order to accommodate his brokers Margin Calls. These exchanges were occuring all over the world at the same time. The lesson is, that when markets are collapsing nothing of value is considered sacrosanct. Third: I also recall that six to eight months before the government of IRAQ invaded KUWAIT the price of GOLD had a precipitious drop. About six months later I learned that more than two billion dollars of gold was dumped on the world market so that the SAUDIS will have the cash to purchase English Aircraft for their military defence. Coincidentally, RUSSIA also dumped gold, about in the same quantity because of their need for cash. At that time gold took a plunge. It was six months later that I found, what I considered to be, the reason. Fourth: Today I observe governments and their central banks, worldwide selling GOLD as their currencies and stock markets are collapsing. The reasons for the decline will become obvious at some time in the intermediate future. But what concerns me most is what the Government of the United States is doing with OUR Gold Reserves. I believe the Clinton Administration is dumping gold on the open market while lending to foreign governments American GOLD at low interest rates. Those governments are in turn are converting GOLD to dollars to pay for their excesses. At the same time they buy with that GOLD interest bearing securities <USÿTreasuries> that are paying a higher rate of interest than the have to pay for the loaned GOLD. This smells like a PONZI scheme where we Americans will be the big losers. Unfortunately we will know only after our GOLD is gone and the scheme collapses. All we will have in our treasury are the promisory paper debts from Banana Republics. I believe there is no better time than NOW to account for every ounce of gold in our treasury. Eakole