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

To: Bill Murphy who wrote (30273)	3/17/1999 10:49:00 PM
From: Alex	Read Replies (1) \| Respond to of 116761

SH: After our last interview, you were very accurate about gold going higher? Wolanchuk: With a worldwide economic boom of monster proportions dead ahead, you're going to have a huge inflationary spiral. The price of everything is going to go crazy on the upside. You've heard the expression "Mongol Hordes?" Those hordes of Cossacks - that's what's going to fuel the world wide explosion of free enterprise, because all those people are emerging from this huge socialist/communist order and turning into untold millions of big spending capitalists. SH: Are we talking next year two years from now, five years from now or are we talking about gold breaking out of its trading range this year? Wolanchuk: Gold is on its way. All you've got to do is be long the metal. You don't really care how long it takes because between now and the time it reaches wherever it's going to go, most of us are going to be dead. Just like when people bought it at $30/ounce in the 20's, most of those people are dead. But they were all worried, "When is gold going to do this and do that?" But it's not important. Some people are going to live longer than others and take advantage of whatever it does, but the important thing is direction. SH: But you said it was at the end of a 17-year bear market. Are we looking at sideways trading for the next 5-10 years? Wolanchuk: No, it was basically sideways for the last 17 years. It dropped down hard and then went sideways. SH: Are you talking above $400/ounce sometime in the next 2 years? Wolanchuk: I don't understand why this focus on 2 years, 1 year, 7 years. SH: Well, one could say in the year 2025, gold will be…. Wolanchuk: In the foreseeable future, I see gold back up above $800 an oz. SH: How do you define foreseeable? Wolanchuk: I don't think much about that. When I said we were going to the moon in August 1987, I thought maybe we'd see a 10,000 by 1996. So it's happening here 2 or 3 years later than I expected it. The last ten years went by so fast nobody cares about that. If they stayed long, they're happy. But if they buy something and say, "Well, it's gonna take 10 years," then they'll be less inclined to buy it than if somebody was convinced it was going to happen 2 years from now. SH: Do you see gold possibly going to where Goldman Sachs projects, which is something like sub-$250, in the foreseeable future? Wolanchuk: It's my opinion wire-houses don't know anything about markets. And if they do, the pronouncements that they make will be for the sole benefit for their back rooms. The pronouncements that wire-houses put out are to get the public to do things that their back room wants to take advantage of. So if a Goldman Sachs puts out a public announcement that gold is going to go down to $250 dollars, it's my opinion that they want their customers to sell. Why? Because the back room wants to own the stuff. SH: So you don't see gold moving in that direction? Wolanchuk: Gold is going to the moon. Gold is sold out. Argentina bailed out of gold. They bought bonds - right at the peak in bonds and right at the bottom in gold. The Swiss did the same thing. There's nobody in this gold market except probably the U.S. government. They always do things right. Just like when they told people, "We're going to be making gold coins and offer them to the public 12 months from now." That's when gold was $400 an ounce. So they ran gold up to $500 an ounce just in time to dump all the gold on the public. The public was convinced that gold was headed a lot higher. And of course the public bought it hook, line, and sinker and the rest is history. They (the public) loved it (gold) at the top, and they hate it at the bottom. SH: By the end of the year, will gold be higher or lower? Wolanchuk: Well sure it's going to be higher. But don't ask me where it's going to be in 12 months. Nobody can answer that question. stockhouse.com