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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (1162)	9/24/1998 8:34:00 PM
From: MUDMAN	Read Replies (1) \| Respond to of 81811

This gold rally smells different than the head-fakes we have seen over the past 6 months. It looks like some bottoms may have finally been put in. Looking at the XAU today, on a generally crappy day for equiites, it was a monster! The VSE was even up today! No doubt the senior golds have already had explosive moves. I believe the juniors are next. If one is to look at the price of ABX on 9/30/97, it was approximately US$24 5/8; it closed today approx US$20 1/4 - or 17% lower than almost one year ago. If one is to look at a proxy for a quality junior, Queenstake Resources (QTR.T)(a company with 38mm shares with $9mm in cash), it was CN$1.51 on 9/30/97 and is CN$0.30 or off 80%. In otherwords, the juniors have a lot of catch-up to do. If this gold rally is real, the REAL leverage is in the quality juniors and exploration companies. One final thought: the fact that Greenspan said what he said yesterday means he must be very concerned with what he sees on the possible horizon. If the FED lowers rates on Tuesday it will be an abandonment of it's "inflation first" mission of the past three years. THIS IS SIGNIFICANT FOR ALL MARKETS - ESPECIALLY GOLD. My predication is 25bps with 50 more by December. Mudman