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

To: long-gone who wrote (26157)	1/14/1999 10:04:00 AM
From: Hawkmoon	Read Replies (4) \| Respond to of 116764

Thanks Richard. I remember a story about how both Joseph Kennedy Sr. and Hubert Humphrey both sold all of the stocks just before the 1929 crash. I also have read that Kennedy then sold the market short as well to make money on the downside and also purchased precious metals. However, I don't know the timing for Kennedy's purchase of precious metals. Was it at the same time he went short the market (and if your reference to HM is accurate, it would be interesting to see how that stock performed), or after the deflationary spiral had bottomed and the gov't then undertook reinflationary measures. I'll see if I can find that historical HM data. Thanks. Ron

To: long-gone who wrote (26157)	1/14/1999 11:12:00 AM
From: CIMA	Read Replies (1) \| Respond to of 116764

This is the January 13, 1999 edition of The Barkerletter, published in association with The Prospector Exploration and Investment Bulletin. Here's a piece for all you gold conspiracy theorists out there... Inflation Manipulation By A.Canon Bryan The market for gold historically has not operated as a function of its fundamentals. On the other hand, gold has acted as a store of value which provides a hedge against adverse socio-political conditions. We look in the world around us and we see a global deflationary spiral; we see the world's only super military and financial power mired in a leadership question as well as a brisk police action in the Middle East, to say nothing of a challenge to it's reserve currency status; we see the collapse of major financial systems around the world, including Japan, Brazil, and Russia; we see a growing uncertainty with respect to a technical glitch which threatens the very status quo of orderly society. These are all good examples of the symptoms that would tend to give gold extrinsic value. However, if this is true, then why is gold performing so poorly? World authorities in gold consistently report that demand continues to soar to record levels, and that central banks, on a policy basis, have no particular desire to either accumulate or dispose of gold, save Switzerland. And yet price has stagnated. This means that even on a fundamental level gold should be performing. An extremely brilliant trader used to tell me over and over, 'the market never lies'. Reluctantly, I came to accept this sagacious saying as being law. Extrapolating the ramifications of this onto the depressed market for precious metals over recent months, one is forced to make the following inference: there are unseen forces which have been, and may continue to, contribute to a burgeoning supply of gold in the marketplace. The Financial Times of London has reported steady sales from Goldman Sachs. They also report that Goldman Sachs is the broker of choice for United States Treasury Chief, Robert Rubin. They do not, however, ever make the inference that the US Treasury could be on the short side of the gold market. Then there's Barron's, who won't let it's readers forget that Rubin is absolutely the button man for the US. As well, they wonder how the IMF and hedge funds can continue to be financed. And yes, they too, wonder about the bear market in gold. It seems to me that all the piecesof the puzzle are there, but the major publications refuse to put them together. Why? It's no secret that hedge funds, particularly in the US, have suffered astronomic losses last year, betting on weak Yen and strong Rubles. It's also widely known and reported that the Fed is far and away the largest holder of gold in the world. As a matter of necessity, it would seem prudent for the Fed (or the Treasury) to have a (secret) policy to dispose of gold - slowly, in order to finance floundering enterprises within. But there may another motivation for the US to sell gold. The Fed - and the G7 it would seem - have gone out of their way to annihilate rates to their lowest levels in a generation, while at the same time maintaining the lowest unemployment for the same period. As a rule, high employment comes with a cost of inflation. But with low rates, how could there be inflation? Well, there is no inflation - there's deflation. At any rate, what are the best indicators of low inflation? Low interest rates and low commodities prices; particularly gold. Would it not suit the US Fed, in the interests of creating a perception of low inflation, to manipulate the price of gold lower? Why else would the US want to manipulate a perception of low inflation? The Barker Letter has reported previously that the US Dollar is a currency in trouble. With unthinkable debt levels, growing fiscal deficits, and fast disappearing global demand, no currency is safe from outright collapse. I believe the Fed understands this and wishes to artificially manipulate the perception of strength in the Greenback. This could never happen, however, with any hint of inflation. I believe this further quantifies my theory of 'Inflation Manipulation'. Gold, in the meantime, continues to be subject to constant unexplained downward pressure. Under this scenario, the gold price in US$ would not improve until the US$ began a significant decline; the supposition here being that a gold price in a control currency would not change, but quoted in a declining currency would improve. These are things that the gold investor may wish to ponder. Be careful out there You have free access to our archives and information at The Daily Barkerletter website -http://www.barkerletter.com FOR THOSE OF YOU WHO ARE RESOURCE SPECULATORS WE RECOMMEND YOU VISIT prospector-news.com FOR DAILY MINING NEWS.