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

To: PaulM who wrote (11568)	5/12/1998 11:03:00 PM
From: Terry Rose	Read Replies (2) \| Respond to of 116836

Paul, There have been a few examples posted on this thread where gold lending by a financial institution has resulted in disaster when the borrower defaulted. Why in the world anyone would lend out gold at a 1-1.5% lease rate when all this global monetary expansion is taking place and with the risk of default is a mystery. At any rate the central banks actions despite the implications of this article indicate that they are slowing down their lending activity. One of the new EMU countries (Belgium if I recall correctly) recently announced that they would not roll over a gold lease agreement. Here is a suggestion I have for the central banks. Stop leasing gold and let the POG rise. If 4000 tons is taken off the market gold most likely will rise more than 1.5% this year. However, as you pointed out they may not get all their gold back if someone defaults. I bought some gold bullion coins today. Hopefully, the gold price will stay down a while longer so that I can build up my cash position which will primarily be in precious metals. The behavior of the U.S. stock market over the past few weeks has begun to alarm me big-time. It's recent failure to correct with the drop in earnings the last quarter and it's failure to note the return of the Asia meltdown leads me to believe that we are in the final blast-off stage. When the market returns to earth things could get a little dicey. I like to think of my gold bullion as a war chest just in case I need one. I sincerely hope that it won't be necessary. However, I will not take the chance. Terry,