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Gold/Mining/Energy : Crystallex (KRY) -- Ignore unavailable to you. Want to Upgrade?

To: Jon Warren who wrote (8498)	5/4/1998 3:17:00 PM
From: E. Charters	Read Replies (1) \| Respond to of 10836

The Albino is a very small operation that was kept that way until they could iron out other political problems. The analysis of Dome's title weakness was done before Eurus was acquired and the process of trying to re-acquire it began 2 years ago. The full scale mine and infrastructure needed to exploit it would be 475 million by Crystallex's calculation. It is pointless to try to refurbish or change the Albino. A new mill and mine would be built. They may keep the Albino as the new mill is being built and even expand it to mine the Albino ground at a more favourable economic rate(perhaps 1500 tons a day). The low price of gold is a direct result of the derivatives manipulation by gold dealers who buy gold production forward. It is a glimpse of what may happen to many stocks in a manipulated metals market where derivatives become the main tool of investors. This buying forward is actually a cabal organized by politically controlled banks who desire to go off the gold standard and print paper to their heart's content. Since the drop in the price of gold and the lower amount of selling forward we have seen a price stabilization and strength. If selling forward continues it may disastrously drop gold to the 200 dollar range and the resultant bloodbath will force the producers to come to terms with the device. I would advise all producers to not fall into the trap of selling forward as it co-operates with forces in the economy who would put them out of business. Selling forward is fundamentally unsound. It assumes that gold will endlessly go upward in a crazy spiral always enabling the buyer to get out within 6 months at the price he bought it at. Of course the buyer is betting both ways with derivative leverage. He most often bets it will go down in price by buying puts on gold. This way he can recover his money even if the gold never gets to the price he paid for it. This phenomenal downward pressure in the past 6 years of selling forward since it became popularized by American Barrick has caused the eventual demise of gold as long term "illegal" shorts accumulated on the market and no more buying existed at the present price. All buying was locked in by the gold buyers at the lower short or higher put price. Thus the fall. An answer to why the gold buyers would still buy forward even if they knew the price would fall is that they covered more and more short up to the last minute of the price high which they had calculated based on the money supply available to buy gold. They knew this supply because they had become the only buyers and sellers to end money source, the banks. They became that by offering higher prices. When the Asian money markets collapsed the time had been set as the only other source of support dropped out of the game. Who are they? Soros, Rothschild, Bronfman, Munk. Who if any do they act for? Well traditionally the Bank of England, France, Germany. Soros has been independent but Rothschild house always did agency since the 1500's for those banks. The borrowing of the gold necessary to borrow money to buy gold (how it was done) was facilitated by those banks. Now that the euro is floated the last major barrier is the 1400 ton Swiss payment to Jews and then gold will float gradually back to 400 dollars. If any one seeks to smooth out a wave he buys silence. echarter@vianet.on.ca The Canadian Mining Newsletter