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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (349)	12/28/1997 10:48:00 AM
From: Larry Haraksin	Read Replies (2) \| Respond to of 8010

The U.S. Banking system is one based on the fractional reserve system. Currently the reserves mandated by the FED are only around 3%. This means if you take a loan from bank A and spend it at store X, the store owner will take the money to deposit in his bank B. Bank B can then loan out 97% of the $100, which in this case is $97, and keep in reserve $3. It is a way of creating liquidity in the system ad-infinitum. However, the fractional system can work in reverse, if there was a panic, people would stand in long lines to get out as much currency as possible out of their banks. If 5% of people request their money out of our banking system at the same time, the banking system will shut down due to lack of liquidity. Banks must possess that 3% in reserves. This also includes stock market funds. Getting back to your question of where silver prices will ultimately go depends on what the FED does in 1999 as everyone panics withdrawling their funds. People will want cash around for purchases of the necessities. If the FED chooses to add massive amounts of liquidity (which creates inflation), $30-$100 prices are not unbelievable. If the FED does nothing, people will still flock to the metals since they have been a safe haven for thousands of years; however, it will be the panicking people who drive up the price to height unknown by me. I believe that the price of silver will not go as high if the FED does nothing. Will the FED do nothing? I think not since the people will request that some action from our government be done. I clerk at a grocery store. Last week a lady received her new dual use banking card from Wells Fargo. She was unable to pay using the ATM function but was able to pay using the card as a Visa. I looked at her expiration on the card and it was 07/00. This means in my book that Visa is way ahead of Wells Fargo in correcting their Y2K problem. Besides Y2K, we have other problems brewing like the Middle East. The Clinton/Saddam showdown will have negative impacts on the Western Countries. Madeline Albright had a conference in the Middle East and few of our allies showed up. Iran had a conference the following week and all Arab nations were present. It looks like some alliances are being changed. Higher oil prices will come. Higher oil prices creates inflation and higher metal prices. I hoped I answered your question. Larry Haraksin

To: Tommaso who wrote (349)	12/28/1997 4:08:00 PM
From: Todd J.	Respond to of 8010

Tommaso, Hello. As investors, the world over, begin to realize and internalize the threat that y2k poses on their investments (which are nothing more than a blip on a large hard drive somewhere)they will want to get out of the markets and into something safe like metals. Metals should begin to move up marginally in early 1998 and then as panic sets in, they will skyrocket before 1999 is over. Silver traditionally proves to have the most leverage as it can go as high as $50 or more per oz. Ultimately, markets will begin to crash.(This is not my own personal scenario, but Tony Keyes' and I believe it... y2kinvestor.com) According to Keyes, if not buying silver outright, silver options are the way to go. As long as the expiration dates are within the century turnover, there should be no threat of electronic loss. Good luck, Todd PS You may be thinking, "What the heck is this guy talking about?" I have probably posted this site here before, but just in case you have not seen it...http://www.garynorth.com ...It made a believer out of me.