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ARCHIVED DISCUSSION FROM 6/25/2001 All times are U.S. Mountain Time (Yesterday's Discussion.) Chris Powell (06/25/01; 23:54:48MT - usagold.com msg#: 56876) Analysis and comment on Barrick takeover of Homestake http://groups.yahoo.com/group/gata/message/816 Good article from www.TheStreet.com.To subscribe to GATA's dispatches by email and get them immediately so you don't have to go look for them, send an email to:gata-subscribe@yahoogroups.com Horatio (06/25/01; 23:52:58MT - usagold.com msg#: 56875) Homestake-Barrick -Franco Nevada I will not be a buyer of any more gold stocks except for maybe Franco Nevada.I look at it as a buy on physical. They are basicly a Royalty company.When ever one of thier partners mines gold ,they get a % of net smelter. This means they have none of the problems of operating a mine such as labor costs ,energy costs, enviornmental costs low quality reserves,high gradeing etc. They simply take some % of oz of gold everytime one of thier partners mines physical.If any physical is mined by any of thier partners they take some of the physical away from them .It doesen't even have to be profitable mining for Franco to gain!!!!If a partner mines at a loss,Franco gains!as long as physical comes to smelter! If gold goes to 180.00 per oz,they still can make money as long as physical comes out of the ground! Even If Barrick runs at a loss,it must mine in order to make good on forward sales.Wherever they partner with Franco ,Franco will still gain ,even as Barrick mines at a loss. Only a mine shutdown hurts them.....They have partnerships with Barrick,Homestake and just about every miner of any size.It is really a bullion play with the advantage of leverage. Smart people they are!no problems ,just show me the money! US_Army(RET) (06/25/01; 23:23:23MT - usagold.com msg#: 56874) Sorry...one last "chapter" Auspec, et. Al.Please forgive one last posting on this apparently "inflammatory" subject.First of all the basis for the apparent success of this forum, is for giving all that have an opinion, primarily in reference to precious metals, an opportunity to express them. And when it boils to it all posts here are merely that "opinion." IMHO.The posts are read and are followed because of the "value" many have to different readers. From my "perspective" many have little, but many have much (value). It has nothing to do with the words used, # of posts, or how long a poster has participated…I am attracted to certain messages because I either learn something new, or something in its content affirms or strengthens a belief I also hold. The same posting may at the same time contain something that I disagree with at the same time. There are some "posters" I avidly "follow" and look forward to seeing msgs from. Even though I may not entirely "agree" with their current "opinion" or "postulation. And I have to admit there are other posters who I wonder are really even "human" or from this planet.---But so be it. It is all because of the perspectives I hold and maintain and how I choose to view this "reality."But just because I disagree with a poster even to the extent of getting angry…name calling and invectives like "anti-somethingorother" is just not a component of intelligent and thoughtful discussion.Ok, I am "anti-zionist," just like others that post regularly here are "anti-Fed", "anti-Big Govt.", "anti-Big Banking," --- these bia's are apparent in nearly every post. I am "anti" a lot of things…We all cannot help but be whenever one is trying to justify a particular position (or opinion)…The thread that holds us all together is that most of us are "pro-gold." What makes us this way is as varied as our different outlooks on life. We all see "good" and "evil" in different places.But for the sake of this forum, and in keeping it a platform for "free" discussion…it is important for us all to agree to disagree now and then, and keep personal "attacks" against posters and their opinions off this forum, with the use of "invectives" etc. I certainly promise not to do so…however I will not keep from expressing my firm beliefs (and opinions) on any subject that relates to PMs, the reasons for current world events that shape their destiny…and statements of fact - Truth (in my view) about any "entity" (not a poster) that seriously threatens the future of our children, way of life, society and world as a whole.While I will look forward to reading your posts in the future just as I have in the past…please feel free to bypass any submitted by me…as I am sure, my "bia's" will shine through once again…Sincerely, SLD Netking (06/25/01; 22:57:49MT - usagold.com msg#: 56873) Christian Christian(56871)...and what a smart young couple they are too, especially if they have locked in at a low fixed rate on the mortgage with the ability lump sum repay. When 1980's Ag high is revisted their little Mexican investment would be worth $1.754Million. . . then Buzz, "To infinity & beyond!"(lets hope they store it safely, and wisely) Horatio (06/25/01; 22:54:59MT - usagold.com msg#: 56872) Barrick & Homestake It doesen't take earnings to get a stock price up,as proven by the dot coms.It takes more buyers than sellers. Although I dislike this merger because it rewards whores and Rakes I think the merged company will be hard to ignore if any large buyer wants in.There must be liquidity if funds and large buyers want to participate in gold.Any gold fund that wants in will have to buy its stock because of the "Political stability "it offers.Ask yourself this question... Whose stock will the big banks,pension funds and bullion traders buy? Won't they buy from one of thier own? They will need to buy a gold stock to hedge thier physical losses.If they can promote the merged company and make hugh profits on paper stock while having losses on physical this is a way out of thier problem. They also have hugh cash reserves to buy cheap proven reserves with .They will be the "bully" on the block.Its a bankers mentality "I'll lend you as much fiat money as it takes for you to go broke,then I'll foreclose and get real assets. IMHO this is thier plan.Remember "more buyers than sellers",not earnings makes stocks go up. Im going to keep my Homestake shares and go along for the "ride" while I hold my nose. Christian (06/25/01; 22:47:16MT - usagold.com msg#: 56871) We have to face reality Simplicity of money creation- print it- use the freshly printed money that cost 15 cents to print $1000 to buy gold or silver and dump it. This is exactly what Greenspan's FED is doing. This is a part of what makes a strong dollar. Another part that makes the $ strong is the fact that the dollar is backed by debt. Total amount of $'s in money supply = value of all real property mortgages. Presently the average borrower in the current refinance boom took out a loan that is $41,000 larger at an interest rate that is .06% higher then they had prior to refinance. Most of this refinance went to pay down credit card debt, car loans, etc. As long as all the banks books balance, there is real property to back all of the money. Another part that makes the $ strong is that government debt and liabilities is backed by the taxing power of the government. The dollar will only get stronger in the years to come as the supply of $'s comes ever more scarce. Our $ is a money created symbol of available purchasing power where the cost of interest is never printed into circulation. Debt is paid by more debt. This new higher debt creates deposits which become the basis of new lending.---- Today a young couple took out a home mortgage at a credit union- deposited the loan proceeds into their checking account at that credit union- opened a bank account at another bank- moved the balance in their checking account from the credit union to the other bank- that bank has a branch office in Mexico in which the young couple used the entire amount to buy silver. $142,000 worth on a house that is property tax assessed for $87,000 and a real estate appraiser valuation of $155,000. They bought it a month ago for $95,000 with $10,000 down. sector (06/25/01; 22:03:09MT - usagold.com msg#: 56870) Its The Moves... ...that mark the "dots". And the "picture" emerges slowly. Very big moves by entities that have access to the highest authorities and their financial plans.Could the recent big moves be simple reinforcements of past strategies or a preparation for the new strategies? Some people know... We guess.JPMorgan (without Chase) has drastically reduced it's >five year gold derivatives (-55%) while simultaneously adding long dated interest rate derivatives by the same magnitude. Reasonable viewers can predict that the future will not hold low interest rates for long as inflation propaganda abounds and the real inflation truth invades the Fed's Towers. So...the future will hold higher interest rates...the ultimate inside trader (JPM) just confirmed this and added to their positions.Reasonable people can also follow JPM's dumping of their long dated gold derivatives. It could not have been because they imagine gold's continued suspended animation. The two moves are diagnostic...especially when one examines the helter-skelter, undiciplined past derivative practices of JPM. They have been all over the map, reacting like amatures.Now, add the merger of ABX and HM (a former non-hedger). Thompson didn't just waltz in and capitulate or "sell out". He has mitigating information most likely as MIDAS says from Germany. I do not think Thompson or Munk (for that matter) see a continuation of today's "Gold Pool".Digressing, there is a popular coffee table book consisting only of newspaper headlines from the weeks leading up to Pearl Harbor. In retrospect, those headlines screamed for the "dots" to be connected. The attack on Peral Harbor should not have been a surprise at all. Indeed, some of the Japanese pilots may have felt they were on a suicide mission.Today's financial headlines are telling us that a big event is coming. The pressure from the National Association of Manufacturers (NAM) directors...actuallywalking in protest marches over the "strong dollar", a recession storm brewing much worse than 1991, the piqued ESF scrutiny on Treasury from Congress, GATA's Federal Court challenge, increasing gold press coverage, gold's conspicuous out performance in the equity markets, questions about 20% of US gold stocks being designated as "custodial" just after the WA preemptive selling frenzy, increased COMEX and LBMA trading pattern volatility, dwindling COMEX warehouse gold stocks and finally public domain comments by Treasury Secretary O'Neill and Fed lawyers that tend to confirm GATA's previously incredible assertions about the government meddling in the price of gold to the detriment of innocents in South Africa who now suffer three pandemics...HIV, Cholera and Western Financial Imperialism.The late astronomer, Carl Sagen was fond of saying "Extraordinary claims demand extraordinary evidence". Credible evidence of nefarious and indefensible US economic missdeeds now abounds and has been tacitly admitted to by the guilty who now try to justify the unjustifiable.The goldbug tactics are shifting towards the end game while the defenders of collusion try to shore up a crumbling circle of wagons. ax (06/25/01; 21:58:39MT - usagold.com msg#: 56869) HIGH MARKET CAP FOR BARRICK -HOMESTAKE The Mining Web reported in an article by Tim Wood todaythat the combined market capitalization of Barrick-Homestakewould be $ 8.9 billion " nearly double AngloGold's $4.7 billion ". It would be important to ascertain what the dividend yield of this combination might be. The ratioof % dividend yield / market capitalization is some measureof the economic efficiency of a gold mine. It pertainsto how much money is returned to the shareholders from all the shares that a company has issued and left floating onthe market. Netking (06/25/01; 21:49:49MT - usagold.com msg#: 56868) Randy etc, All - Barrick Concerning the strategy of Barrick going forward: 1)Are they looking at a partial unwinding of their short position?2)Are they taking insurance against an upmoving POG? Black Blade (6/25/01; 21:38:06MT - usagold.com msg#: 56867) Barrick Gold's Buyout of Homestake Mining Stokes Conspiracy Theorists http://www.quicken.com/investments/news/tst/notemplates/frame.dcg?symbol=ABX&ntlink=http://www.thestreet.com/_intuit/markets/aarontaskfree/1472654.html Snippit:"It's an unmitigated disaster," said one trader of mining stocks. "I see no reason to do this transaction. [Homestake] could have achieved a 30% premium in the blink of an eye if the gold market hiccups." A big reason for frustration over the deal is that Barrick is an aggressive hedger while Homestake is not. Hedging refers to mining companies selling future production at a fixed cost, in order to protect themselves against potentially lower prices. Assuming completion of the merger, the combined Barrick-Homestake will have about 18 million ounces, or about 20% of its reserves, hedged at a minimum price of $345 an ounce. Although that's well above spot market prices, hedging is anathema to gold bugs, who believe the practice contributes to a vast effort by central banks and broker/dealers to artificially suppress the price of gold. Some of the more aggressive conspiracy theorists accused Homestake CEO Jack Thompson, who will become vice chairman of the combined entity, of essentially selling out to the enemy.But Thompson's enthusiasm was not shared by some other Homestake shareholders. "What's upsetting some people is that Homestake has hedged very little while Barrick is one of the worst offenders," said Jean-Marie Eveillard, manager of the $10 million First Eagle SoGen Gold fund. "I don't want to move from a nonhedger to the worst offender." Eveillard also expressed concern that Barrick will increase its hedging activities going forward. Oliphant's comments notwithstanding, that was one reason gold prices initially dipped on news of the deal, traders said. Finally, the 30% premium is "theoretical" because it's based on Barrick's stock price and not a cash offer, he said. The fund manager said he will either sell his existing Homestake position or sell the Barrick shares once the exchange is accomplished. If others follow a similar strategy, "then incidentally it should be positive for other mining companies that don't hedge" much, including Newmont Mining (NEM:NYSE), Gold Fields of South Africa (GOLD:Nasdaq ADR), and Franco Nevada, he said. Newmont and Gold Fields, however, both ended lower on the session while Franco Nevada gained just 0.3% in Toronto Stock Exchange trading.Black Blade: Here we see another Gold Fund manager who opposes the merger. Contact your gold fund managers and make the case against the merger. Get control of your shares (Homestake) and vote your proxy against the merger! Check out the article for the pro-con argument. And finally, Eveillard is a man after my own heart - note the following:"We've always looked at [gold] as an insurance policy and after a 20-year [gold] bear market, it's a cheap insurance policy," he said. "If something goes wrong to the point where financial assets get into real trouble, the upside in gold and more so gold stocks is tremendous and can offset substantial losses incurred in financial assets."To that I say "Absolutely Right On!" ax (6/25/01; 21:34:07MT - usagold.com msg#: 56866) WHAT IS EST. DIV.YIELD ON NEW BARRICK-HOMESTAKE ? Does anyone have an estimate for a future dividend yieldon the new Barrick-Homestake Gold Mining Company based oncurrent price of each? For example, how would it comparewith the dividend yield at current prices of Anglo Gold (4.65 %),Gold Fields (2.90 %) , and Harmony (2.62 %) ? USAGOLD (6/25/01; 21:23:40MT - usagold.com msg#: 56865) Abuse of the Forum. . . I have just pulled a notable poster's code. He not only posted a link to his website, he's selling advertising there. (I don't have a problem with him having a website; I don't care if he sells advertising; I do care if this site is used is used as a springboard for various web ventures.) This is a blatant breach of the rules. There have been several codes pulled of late for abuses of one sort or another and I will pull more if I have to. Though I do not particularly like losing a poster like the individual whose code was lifted, let this serve as notice that the rules will be enforced and abuse of this forum will not be allowed. Black Blade (6/25/01; 21:20:40MT - usagold.com msg#: 56864) Barrick, Other Mining Cos Grapple With N Am Power Prices http://www.quicken.com/investments/news/story/djbn/?story=/news/stories/dj/20010427/BT20010427002995.htm&symbol=ABX Updated: Friday, April 27, 2001 09:35 AM ET By Lynne Olver Of DOW JONES NEWSWIRES Snippit of old article:VANCOUVER (Dow Jones)--Higher electricity prices at home and in the western U.S. are pushing up costs for big Canadian mining firms that have to buy the juice, while pushing up earnings for those able to sell it. Barrick Gold Corp. (ABX, news, msgs) executives said Thursday they expect power costs at the Goldstrike property in Nevada to rise to about US$60 million in 2001 from US$43 million in 2000. The mining company had budgeted for about US$50 million in 2001 power costs at Goldstrike, but told analysts the Nevada state legislature has approved higher rates charged by Sierra Pacific Resources' (SRP) utilities. "(The legislation) increases our power costs to about 6.1U.S. cents a kilowatt-hour, a pretty substantial increase over last year's numbers," said John Carrington, Barrick vice-chairman and chief operating officer. "The impact will start in the second quarter." In March, Barrick voluntarily curtailed power consumption at the Goldstrike roaster facility for five days while conducting maintenance. Carrington said the company agreed to the curtailment because it had no impact on gold production or earnings for the quarter or year. "Our view about that is, we think it's a very important learning step as we move into the summer period when things may be a lot tougher for everybody than they are at the moment," Carrington said.Black Blade: Energy costs at the US mines are devastating to the bottom line. Barrick is just one NA Gold miner that is in serious trouble. They have energy intensive operations with mining, milling,and autoclave facilities. They also have rising heavy equipment fuel costs. Black Blade (6/25/01; 21:10:47MT - usagold.com msg#: 56863) Panic at Barrick and a Call To Arms! Panic at BarrickIt was not much of a surprise that Barrick was in the hunt for an unhedged miner. They had no choice. They are heavily oversold on forward sales. I have mentioned this as a likely event over a year ago. Obviously a Newmont - Homestake merger would have been a better fit. Even a Placer Dome - Homestake merger would have been better. A better merger would have been AngloGold - Barrick. Barrick needed to acquire a lot of ounces to throw at their forward positions. The costs of production at the Nevada Goldstrike Property that includes the Betze-Post open pit mine and Meikle underground mine are rocketing higher (mostly due to higher energy costs and more high cost refractory ores). It is rumored that the inability to hold down costs may have led to management shakeups at the Nevada property. Actually I thought that a AngloGold-Barrick attempt at taking on Goldfields was a possibility. Now the pressure is on AngloGold to step up to the plate and perhaps resume a takeover challenge, perhaps even making a move on unhedged Goldfields. It is going to get "interesting" over the next few months. A Call To ArmsHomestake investors could throw a monkey wrench into Munky's takeover plans. Those who own Homestake shares in their own name (Not Broker - Street Name) can vote against the merger when the proxy is mailed. Other investors could call their brokers and demand to have their shares registered in their name so they can vote the proxy against the merger. Note - Most brokers will try to discourage investors from making this change because it takes power away from the broker. Stand firm and get control of your shares and vote against the merger. Another move is for those who hold mutual fund shares is to contact the fund managers and make the case against the merger. Ask that the fund vote their proxies against the merger. The Tocqueville Gold Fund for example, will likely oppose the merger as they prefer unhedged producers. This move by Barrick is sheer panic and desperation as they are caught in a precarious position should gold prices rise. It is a sad end to one of the oldest companies on the NYSE. - Black Blade megatron (6/25/01; 20:39:56MT - usagold.com msg#: 56862) silvercollector Dude! I never did get a real email from you. The one I got was messed. WASUP? silvercollector (6/25/01; 20:36:13MT - usagold.com msg#: 56861) One quarter versus one-half Does anyone have any ponderings on the interest rate adjustment tomorrow?Would one quarter be bad news for the PM's? Journeyman (6/25/01; 20:27:11MT - usagold.com msg#: 56860) Q & A @Playrightman http://www.usagold.com/gildedopinion/bigfloat.html Hi Playrightman!Check out the link for an article titled "BIG-Float: The American Damocles" that pretty much answers your questions - - - except what WILL cause it. The article let's Federal Reserve Chairman Alan Greenspan pretty much tell the story.Also an article that updates the situation at:http://www.journeyman.1hwy.com/J-BIG_OneIIIb.htmlRegards,Journeyman SteveH (6/25/01; 20:26:59MT - usagold.com msg#: 56859) Enabler Rich,The hedge, the option, the derivative are what was enabled. What did this enabling. What event or events caused or allowed such a counter-party risk affair?Steve Max Rabbitz (6/25/01; 20:01:47MT - usagold.com msg#: 56858) Playrightman, Speculative Answer to # 3 An Epiphany R Powell (6/25/01; 19:26:11MT - usagold.com msg#: 56857) Playrightman I'll try 1) yes, overnight! Cause, loss of confidence 2) yes again 3) anything from the flapping of a butterfly's wings to Armagedden You should be able to find lots of commentary on these questions in the archives. No charge, but you'll have to look and read. Have fun! Rich megatron (6/25/01; 19:19:14MT - usagold.com msg#: 56856) Playrightman Don't hold your breath :^ ). I would not risk ANY major amounts of capital until long term moving averages had OBVIOUSLY indicated a change. Stocks, Lies, and Ticker Tape (6/25/01; 19:19:01MT - usagold.com msg#: 56855) Playrightman I'll give it the old gold try! (May be denominated in fiat though.)For your first question, if the US was defeated in a war. As in conquered. Blitzkrieg style. Or a protracted war that causes the printing presses to hum ever faster, driving off even the most numbskulled foreign investors, with some other place for them to park their wealth. Intelligence screams physical gold ownership. However for die hard holders of fiat at that time in the future, perhaps the Euro or some other as yet unknown abomination against honest working people. Otherwise it is difficult to imagine the dollar collapsing "quickly" as in a few days. I view the US$ as seriously weakened already. Much like the stately oak in full leaf, above ground all looks well, below ground the roots are rotted. The oak awaits the next wind strong enough to topple it. Not a question of if, but when.The second question I think may arise by a government decreeing private and public holding of US securities illegal. Yet it would most likely employ a deadline to be met. Japan cashing in comes to mind. But that would have to be preceded by asian geopolitical realignment that would take time to coalesce, difficult to imagine the timeframe of a few days. Also should the US government just come out and admit that it is tired of playing socialist, and just wants to be honest unto itself and declare itself the latest greatest commie nation. That would tend to clear the foreigners off Wall Street. IMHO Playrightman (6/25/01; 18:32:17MT - usagold.com msg#: 56854) Seeking speculative answers to some questions I have from people more experienced and knowledgeable in these matters than I am. (1) Is it possible that the decline of the dollar (which seems commonly to be regarded by goldbugs as about equal in significance to the Second Coming) might happen very rapidly. If so, how? (2) Related question: Would it be possible for devastatingly serious foreign disinvestment from American stocks and bonds to occur very rapidly--maybe not overnight, but in a few days? (3) What specific events, as opposed to general causes, might bring on the rapid transformations referred to in my other questions?Any of you care to let your imaginations roam a bit? Tree in the Forest (6/25/01; 18:12:56MT - usagold.com msg#: 56853) Report on gold http://www.skolnicksreport.com/pingmkts.html An interesting report on gold can be found at the above link. This is from Skolnick. Thank you Midas. auspec (6/25/01; 18:03:46MT - usagold.com msg#: 56852) Update on GATA/Howe Case http://www.goldensextant.com/commentary17.html A great example of how{e} to beat the BBs at their own game. R Powell (6/25/01; 17:54:29MT - usagold.com msg#: 56851) Steve H Enabler May I put in my vote for the Enabler as derivative covers (hedges). These have a bad connotation among most goldbugs but can be used to offset or transfer risk. Any capital invested is placed at risk with the expectation that the rate of return increases with the amount of risk. With the risk of loss offset by hedging, then the capital appears free (available) to be invested again. Result, huge positions held with very little real capital. Example, a long futures position can be initiated with a percentage of the total price. Risk is immediately created. Now a put option (the right to sell) can be purchased relatively cheaply (one time premium payment). So, if our futures position increases we make money with the increase (when we sell the long position for a profit). The profit will equal the increase minus the small put option price. Transaction fees are also an operating expense. If, instead, the futures position goes down, our option to sell will increase in value to offset our future's position loss. Given the same strike price for the option as for the future, they offset exactly. So the option is insurance against loss. If the position can be insured against loss with a cheap put option (inexpensive in comparison to the gains or losses the futures position might experience) then the initial capital used to purchase the long future is no longer at risk. The derivative has great leverage and so a large (huge) loss can be covered with the one time option premium (purchase price). With "insured" against big loss positions, The Acme Huge Investment Co will now be tempted to reinvest somewhere else or multiply it's positions thinking that devivitive options will insure against loss. Positions can be taken on margin and insured against a big loss so why not invest 100 million even though there is only a fraction of that amount in the kitty?? Wouldn't this practice inflate the bubble? LTCM found out that offseting risk does not always work and others found out (painfully) that transfering risk does not eliminate risk, transfering is passing it along to someone else (at a price of course). The risk still exists. With "risk" insured, but large profit still available, would not the investor be tempted to increase the stakes?Wouldn't the "game" inflate to acommodate bigger stakes with everyone involved eventually buying derivitives to offset some risk of default. Get us another deck of cards, I think we can build this thing a little higher. I've often thought that it has become so complicated that no one knows exactly who, where or how much exists and a final tally, taken all at once, may never occur. Does this make sense as an enabler?? Rich Horatio (6/25/01; 17:43:12MT - usagold.com msg#: 56850) Barrick & Homestake A wise broker once said to me "the markets are "perverse" I have noticed that worthless companies like aol buy worthwhile companies like Time Warner.Bad drives out good,just like bad money drives good out of circulation. The "perverse"companies always seem to make money .Maybe something will come out of this merger ,(like a lot of money )although my heart will still be with Homestake.I will despise Barrick with every dollar I make. ET (6/25/01; 17:38:15MT - usagold.com msg#: 56849) Money laundering http://www.sunday-times.co.uk/news/pages/sti/2001/06/24/stifgneur03002.html Interesting money laundering advice from our friends at the Sunday Times, but unfortunately, the obvious vehicle gold, doesn't garner any mention. From the article;"In Germany, Europe's largest economy, the blackeconomy accounts for 16% of gross domesticproduct and is growing three times faster than theeconomy as a whole, generating the equivalent ofabout £30 billion in black-market cash. ""If you spend it on a car the finance office will know,since each sale is registered with them," saidHerman Lang, a tax consultant. "If you buy a villa inSpain, the Spanish will notify the German authorities.So the alternative is to have a bit of fun: spoil the wife,the mistress and yourself." "Others are expected simply to transfer their money totax havens such as Luxembourg and Switzerland.Road blocks have been set up in Germany near theborder with Luxembourg to check on people crossingthe frontier with large amounts of cash. "We areseeing close on a 30% increase in the amount ofmoney found hidden in cars crossing the border,"said Werner Theil, a policeman in Trier, near thefrontier." Tree in the Forest (6/25/01; 17:35:45MT - usagold.com msg#: 56848) R Powell Has leasing stopped Rich? Lease rates down now (as you have been reminding us). Currently at 1.5% per month. Maybe these guys are still doing it. They are pretty smart when it comes to making money but get real dumb when their special priveleges are revoked! Randy (@ The Tower) (6/25/01; 17:28:40MT - usagold.com msg#: 56847) June/July 2001 News & Views... reminder http://www.usagold.com/DailyQuotes.html Centennial's overseas clients (and anyone else who prefers digital to paper) are reminded that MK's latest newsletter has been available (for several days now) and can be accessed at the bottom of the 24-hr newswire found at the URL above. auspec (6/25/01; 17:14:23MT - usagold.com msg#: 56846) Journeyman, Black Blade, Peter Asher, tedw, & all concerned First, please allow me to repost the words of my friend, Peter Asher, that I am totally in agreement with:"Most of those Palestinians and Israelis are people like us trying to survive in an insane world.. The main difference is the degree of conflagration on their streets and sidewalks. They have no more control of their alleged leaders than we do and are just as subject to their media and political spin as our sheeple are.""The essence of prejudice is judging any SINGLE individual by the actions of others of the same race, creed or color. Even individuals having the same specific religious belief can engage in very different applications of that to the environment around them."That is where I live, and if my term 'antisimetic' violated these principles, it was indeed a poor choice of words. The MiddleEast problems are not going to be solved on this forum, yet they do hold significance for each of us as well as our precious yellow metal. Other than the gold connection this is a topic that is totally inflammatory to many. That being said, when I see a particular poster putting up a significant % of his posts as what nearly every rational person would consider to be 'anti-Israel', I will typically join in in condemnation of same. No apologies for that. I have never seen you do that Jman. Do you notice most people discussing this issue have little trouble finding fault with both warring parties? Include me with that group, please. On the other hand a regular and one sided condemnation of Israel will not pass without protest, yesterday, today, or tomorrow. Count on it.If being a Zionist means the Israeli people have a right to a homeland and to live in peace, then you can call me a Zionist. Which side is it that has their ultimate goal of wiping their sworn enemy from the entire region? Talk about a determined and surviving underdog.This subject has gotta go, it has become a MAJOR drag. Book is closed permanently, hopefully.Respectfully,auspec JMB (6/25/01; 17:09:25MT - usagold.com msg#: 56845) LAMPREY_65 Your conclusion is outstanding. ThanksI think the Big Mick is right....we're getting real close....btw, that's Murphy. JMB (6/25/01; 17:00:52MT - usagold.com msg#: 56844) For you paper players. TRC CAPITAL CORP is making a tender offer for MDG. $12.10 Canadian. Good until 7-13-01. Any thoughts? I kinda figured that AEM and MDG would hook up. THAT, would be a sweet gold mining outfit, imo natch. lamprey_65 (6/25/01; 16:55:47MT - usagold.com msg#: 56843) My take on the ABX/HM Merger Today the longest continuously listed company on the NYSE was acquired (Homestake Mining).As a recent purchaser of Homestake stock, I am saddened by the deal...although I'm sitting on a 68% gain in less than six months, I purchased the shares for a move to $20 a share at $400 POG.On the bright side, however, I see this as positive for POG. It has been evident for some time that Barrick Gold and Anglogold are the two most well-connected companies in the industry...they've managed to ride the carry trade down and now they look to be unwinding their positions - Barrick through the purchase of Homestake and Anglogold's attempts at Goldfields and WMC Limited.Barrick is heavily short both gold AND silver - Homestake is a leading producer of both.Yes, justice would have Barrick and Anglogold pay a heavy price for their facilitation of the carry trade and gluttony by the short sellers of bullion. Unfortunately, that type of justice doesn't happen much in business.But, like I said, I'm bullish on the deal.Look at it this way...Do you really think Barrick would pay such a nice premium for Homestake today if they thought POG was going to stagnate or fall, thus eroding Homestake's share price tomorrow?Me neither. R Powell (6/25/01; 16:02:40MT - usagold.com msg#: 56842) Two fer day Rates were down again today. This is disappointing but if the Greenman cuts the Fed. rate again the carry trade should be dead. Even without more Fed. reductions, this trade has stopped, hasn't it? POG for August was up $1.40 to $274.70. POS for July was down $.50 to 429.8 cents. Both traded in a narrower trading range than we've seen recently. Calm before the storm? The mining stocks ended the day up just a hair, so we have two out of three. Does the FOMC announce their rate decision tomorrow or Wed.?? Perhaps one cut too many if they really want to keep the U.S. dollar so strong against the world. We'll see. We must be busy today! I've been waiting to speak but couldn't access this post page. With everyone in a talkative mood, I'll keep my mouth shut and read (learn). Rich Tree in the Forest (06/25/01; 15:25:19MT - usagold.com msg#: 56841) Horatio Ha Ha Ha!! Good one. And I thought Goldfields might be headed down this path with Anglogold. Who knows. It still could happen. megatron (06/25/01; 15:10:26MT - usagold.com msg#: 56840) Gold and Hubbard Actually, L.Ron was obsessed with finding gold from his 'past incarnations' as a pirate and a Roman. He never could 're-locate' the sites accurately. He also claimed Machiavelli stole the transcript for 'the Prince' from him. Life is anything but boring... Centennial Precious Metals, Inc. / USAGOLD (06/25/01; 14:59:33MT - usagold.com msg#: 56839) Hard assets... Easy access! http://www.usagold.com/gold/coins/st_gaudens.html
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