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Gold/Mining/Energy : GOLD-XAU -- Ignore unavailable to you. Want to Upgrade?

To: Superhawk who wrote (1437)	4/22/1998 12:46:00 AM
From: IngotWeTrust	Read Replies (1) \| Respond to of 1756

Happy to reply via private msg tomorrow, ok? I'm on long distance as a construction crew cut all local ISP access, a real expensive bummer. Thx for writing and I'll catch you tomorrow, ok? You're asking all the right questions. I'll see if I can help. O/49r

To: Superhawk who wrote (1437)	4/22/1998 12:55:00 AM
From: ahhaha	Read Replies (3) \| Respond to of 1756

From an old gold buff who bought it when it broke $35/oz, don't buy coins or physical gold. they'll burn you on the spread if you want to buy or sell. There's only one way to play. Buy stock. Don't buy cheapo gold companies. Don't buy foreign except Canadian. Keep it simple. Buy ABX, NEM, HM. They're good enough. The stocks also are not a problem wrt your IRA. Holding physical gold is trying to win some absurd end game. If circumstances arise where only physical gold is fungible, it will be essentially infinite in price and therefore worthless. The entire world would have to be in such dire straights that gold would do you no good. After all, you have to eventually convert the gold into something else. The only thing you can spend is some form of currency, so inevitably you'll have to convert the gold back to currency. They won't take gold at Safeway. The only purpose in holding any form of gold is to protect yourself from people using monopoly power to get inflated wages. Obviously as that unfolds the world's central banks have to go in and make inflationary demands disappear. This is done by generating unemployment through interest rate increases. The longer the authorities delay raising rates, the higher gold will go. The reason why the rate increases won't knock gold down is because the authorities don't want to throw the economy out with the rising rate water, so they will take a "wait-and-see" attitude. They think they learned from the past. No. They will delay and gold will go higher because everyone will be out striking. All power to the peoples! There are other problems with physical gold like the possibility of theft. Stick it in a bank deposit box and the bank locks the doors. Stick it somewhere else and someone steals it. As you stated you have to pay rent on it. The government might make it illegal for you to hold it. They've done it before. Believe me, it's a headache and you don't do any better with physical gold. You have to remember that you don't hold it forever. Forget this balanced portfolio blab. The perfect balanced hedged portfolio earns at the perfect interest rate which is well-approximated by the return on long treasuries. 5%/yr. Ho-hum. You buy gold through gold stocks now because you believe it's cheap. There is no other valid rationalization for so doing. Buy good gold stocks like I've mentioned above.

To: Superhawk who wrote (1437)	4/22/1998 4:58:00 PM
From: IngotWeTrust	Respond to of 1756

Hi, Scott, let me answer your Qs the best I can. The best way to shift IRA funds to actual bullion is a "tricky one." 1st of all, to the best of my knowledge, you cannot use existing IRA money to buy new gold bullion outright. However, there is specific languaging for use of NEW IRA Contributions to purchase gold bullion. There IS a Fidelity MF that invests only in US bullion coins, or at least there USED TO BE...I remember investigating it when it first came out. Us this desire of yours to shift IRA money as a carrot and see what you can dig up for current info. Your bank should also have the same information. The trick w/the new languaging as I understand it is that the actual purchase has to be an "arms length" purchase, so that you never take possession until liquidation time of course, of said bullion. A second way to play bullion is to purchase actual shares of Bank of International Settlements of Basel Switzerland. You'll need a broker w/experience in placing international orders through their internal correspondent relationships w/Merrill Lynch. A few years ago when I investigated THIS option, they were selling for $8,000+ per share. With the current sag in POG, it maybe less. Anyhow, that share purchase is backed up by on of the most EXTENSIVE and well documented gold hoards/reserves of modern history. Don't see why IRA money couldn't be used for this purchase, unless there is some archane preventive languaging of which I'm currently unaware. A third way to put existing AND new IRA money to work in bullion is to purchase CEF, which is Central Fund of Canada, run by a respected associate, Ian McAvity. Ian's prospectus requires this fund to be fully backed by actual silver bullion. It trades on the AMEX and is available for you to consider. Now to your second Q--you can see this is going to be a long reply :o) What is the best way to take delivery of some gold bullion coins and store them in a safety deposit box. This is a two part answer. The first part is the best deal is found by Shopping around for the best offer. Afterall, gold and silver bullion purchases are just like any OTHER retail purchase...there is a wholesale pricing and a retail pricing. The safety deposit box part shows a certain lack of "options" in your thinking, i.e., your choices of where to store need to be expanded. That is grist for another post. 3rd Q: Choices of physical gold holdings: Coins, Tokens (yes there IS a difference...the ones I'll be issuing w/be tokens...if you are unsure of the difference, please ask) Bars Jewelery raw material format (wire, shot, bars, etc., etc., etc.) Placer...one of my all time rav fav methods, and fabricated jewelry as close to spot minus the fabricated premium. ABOVE ALL...try to conduct your physical gold biz w/people whom you can trust! FWIW, I'm on that short list and would like the privilege of submitting a bid. O/49r