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To: Zeev Hed who wrote (11475)	12/14/1997 8:03:00 PM
From: Bonnie Bear	Read Replies (2) \| Respond to of 18056

I don't know, Zeev. The big banks and american companies have treated asia like serfs, using this as an opportunity to buy up assets on the cheap and place blame for financial problems on asian nations. If asia, or a large part of asia, becomes anti-American, the backlash will not be pretty. Regarding gold, China and Russia and much of Europe have made it quite clear that they have no interest in abandoning their gold, and it is China and Russia that actually control a majority of the world's natural resources, including three thousand years of trading ties to Africa and the mideast. I have been hearing the $280 number for gold for two years now as a reversal bottom. And here we are. Remember, people sell assets when they need the money. Countries have sold gold because they are in debt. I don't see the dow going to 2000, but I can imagine it will be stuck in a 6xxx trading range for many years.

To: Zeev Hed who wrote (11475)	12/14/1997 8:12:00 PM
From: Brad Bolen	Respond to of 18056

Zeev, I view your posts with mucho interest. I just love this kinda new era talk when I go long: RE: "The current world production of gold (at $300/oz) is roughly 22 Billion annualy, the world economy is well over 20 Trillion, if all new gold produced went to support currencies (even at a low 10% backing), the world economy could not grow faster than 1% per year. This is a chronic situation due to anachronism of Aynn Randist romantics, and the world is, albeit, slowly, growing out of its fascination with the yellow." It is interesting that we have been off of the Gold standard for some years now. I am confident that the central Banks have been aware of this and I doubt that they prefer to lose money by keeping a dirty little secret from the masses. I suspect that many central banks are cash poor and are worried about Asian style problems causing them to loose even more equity through lower gold prices. So they are raising cash. You suggest that : " The price will decline until a large number of inefficient producers will close to bring the demand supply into balance." I suggest that this has already been happening (closed mines), and that it is only going to take two things for gold to go: 1) for the US equity market to break (the major indices, that is) reducing any "safe havens" to essentially zero, and 2) for just ONE major central bank to even suggest they may be buyers of gold... and then BOOM...to the moon alice. You notice that silver is rising on demand issues. Gold would too if not for FEAR of more central bank selling...FEAR that is. And when that fear is gone the fundamentals will kick in. B.