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To: Mark Fowler who wrote (44818)	3/9/1999 5:08:00 PM
From: GST	Read Replies (3) \| Respond to of 164684

Mark -- <Do you have an opinion?> Have you ever known me not to have one? <G> If you are asking about gold -- currency markets are huge places for big hitters to play games. Daily foreign currency markets are around $2 trillion per day, actually more now. Gold is traded both as a commodity and as a currency. Some central bankers have been trying to get gold out of the currency business -- with quite a bit of success. As a commodity, gold has been a great place to make a killing going short -- which even the gold miners do -- nobody has had any hope. What we are on the verge of seeing is gold making a comeback as a currency -- hang on to your hat if it catches fire, there is a really big short position sitting under this puppy. Naturally, those who are short will have something to say about this -- try to imagine their exposure to a surge in price! Today's 'rumor' is that there is a committee being formed in China to 'study' devaluation ------ hhhmmmmm ------ I will be in Beijing on Monday -- want me to ask? <G> Lets see -- China buys gold before devaluing? Nah <VBG>.

To: Mark Fowler who wrote (44818)	3/9/1999 5:17:00 PM
From: GST	Read Replies (1) \| Respond to of 164684

Mark -- Oh ya, one more thing -- China has something like $120 billion in 'official' reserves -- probably more in reality -- and less than 3% is held as gold. They are also gold miners. Lets say they bumped that percentage up to 20% -- lets say a twenty-five billion dollar purchase. Would you want to be on the other side of that trade going even more short to try to hold the price down? And all this is not taking into account the buy side bias that has been creeping into the market, not to mention inflation, Y2K, the end of European gold central bank gold selling or the recent surge in Indian imports -- etc. etc.