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

To: Jim McMannis who wrote (1589)	10/15/1998 4:55:00 PM
From: sea_urchin	Read Replies (2) \| Respond to of 81145

Jim : I was surprised, the other day, when you said you sold off half your gold shares. I believed either you had misread the long-term situation or were being tempted by a short-term profit. The previous cut in US rates of 0.25% and today of another 0.25%, together with a 10% fall in the value of the dollar and a 10% rise in the long term interest rate (not a rise to 10%!) all point in one direction. Greenspan is opening the gates, as you suggest, for increased liquidity. Obviously, he can't do it all in one day but I believe he's doing it as fast as he can --- and the market is responding accordingly. As you say, inflation is now driving gold --- it would seem not only gold but the whole market. Today, as far as I can see, every US index went up. The percentage rise in the XAU was exceeded only, fractionally, by DJTransports. That is something. Perhaps the rather paltry 6.8% move in the XAU won't satisfy the goldbugs who are looking for 100X returns but, in my opinion, it is significant. Gold shares are here to stay! The rise in the market will certainly catch the bears, with large cash and/or short positions, on the wrong foot. Fortunately, I still have my portfolio so I'm smiling today. Good luck on the dips --- if there are any! Searle