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To: re3 who wrote (39692)	5/8/1999 7:33:00 PM
From: yard_man	Read Replies (1) \| Respond to of 86076

I think you have a valid point, Howard -- up to a point. I think markets work over the long haul and that gold is going to come out of its bear market. I do believe however that central bankers, governments have tried to talk gold down -- if that is not what they are doing what are they doing?!! The fact that they have gone to such great lengths in such a coordinated fashion makes me very bullish on gold and the gold miners. Talk will not quell the demand to buy insurance against financial distresses. I wouldn't use the word conspiracy to describe parties wielding what economic powers they have to make their own investments profitable. For instance, I wouldn't put support behind this GATA thing. To think that central bankers will not act to protect those who give them their power, I think is naive. I believe that the brits didn't do this on their own but acted in concert with the US. Does that make me a conspiracist? This administration and the fed are already between a rock and a hard place. To have to raise short term rates now is thought to be a killer to the economy -- producing an oppposite of the wealth effect, but an unwillingnes to cool things off on the other hand is likely to result in higher long term rates - their only hope is to try to continue to keep rates artificially low. Clearly the Fed thinks an early warning for inflation is the price of gold -- to keep preaching that everything is alright, when in fact it is not -- can't have a rally in gold. If the brits really sell gold reserves to replace with US $ they will be making a big mistake and doing it at the worst possible time. Talk is cheap -- how much have the swiss really sold and how much will the swiss and the brits sell? Again, it is only talk, but talk that has a short term impact. I wouldn't call it a conspiracy, just someone buying a little time. I take it as very bullish for gold. Talk markets the way you want them to go almost never works ... Asians have already seen what a wonderful hedge gold has been when their currencies were hammered. The dollar looks unassailable now. I'm not saying it is going to crash and burn tomorrow, only that the strength is the result of some rather serendipitous events, not a function of a solid base for prolonged economic growth. There is a huge expansion of credit that has occured and continues to occur, but some of the early conditions that allowed it to grow so big are starting tobe tempered somewhat. Let's see what the next 6 months brings, eh? You won't be hurt terribly owning some gold mining shares right now -- as long as they are producing something.