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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Mark Bartlett who wrote (3294)	11/19/1997 11:23:00 PM
From: Bob Tate	Read Replies (1) \| Respond to of 116815

Regarding Japan shifting in to gold. Any government that increase gold reserves will support their currency. For Japan to start selling US treasury bills and use US$ to buy gold must do it very quietly. Otherwise they will create sudden drop in the value of t bills and increase POG. My estimate, as soon as market players see the signs of Japan selling these assets it will be early sign to get out of equity markets and in to GOLD. Second indication will be rising in US short term interest rates to finance capital outflow. One way for USA to reduce future financial crisis blow is to act first. That is start increasing gold reserves themselves. This way buying all available cheap gold with mighty $ and making it less attractive for Japanese to dump US T Bills in favour of gold at higher prices. The race may have started already. Japan does not owe any islands to Russia. Russia occupied several Japanese islands during II WW . They are Kunashir, Shikotan and possibly other. This was always an obstacle for expanded trade between two countries.