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ARCHIVED DISCUSSION FROM 5/2/2001 All times are U.S. Mountain Time (Yesterday's Discussion.) justamereBear (05/02/01; 23:55:08MT - usagold.com msg#: 52953) Tree in the forest And BTW, I agree with your arguments in 52944j'Bear justamereBear (05/02/01; 23:51:06MT - usagold.com msg#: 52952) Tree in the forest My appologies. That was what I read as the underlying message. It is true that in a totally free market, where arbitrage is easy, little price diffrence will exist, one market to another. Are you suggesting that any market, for anything, in any part of the world is totally free, what between outright manipulation, government laws, regulations, and things like "professional societies" and marketing boards? I recently read, I believe it was in "The Alpha strategy" published in the early 80's, that a study by the Colorado State University found that there were some 41,000 state and federal regulations effecting the common hamburger, everything from grazing the beef cattle, to assembly of the burger at your local fast food outlet. I can believe it.I was not trying to disparage your message, rather more I agreed with much of it, but my cynical view of life as "she is lived" wanted to add another dimension.Sorry, againj'Bear justamereBear (05/02/01; 23:26:40MT - usagold.com msg#: 52951) Solomon Weaver LOL LOLj'Bear Black Blade (05/02/01; 22:30:14MT - usagold.com msg#: 52950) Some Analysts See Stagflation Again Rearing Its Ugly Head http://www.latimes.com/business/20010429/t000036205.html Snippit:The year-over-year inflation rate peaked at 12.2% in 1974, fell back for two years, then resurged to 13.3% by 1979. The first peak came during one of the nation's nastiest postwar recessions, and the second came during a time of barely sputtering growth. These twin bouts of stagflation are popularly associated with the big oil price increases that hit the United States in 1973 and 1979.Black Blade: This article is a couple of days old, doesn't go into details and misses a few important points, but interesting nonetheless. Solomon Weaver (05/02/01; 22:22:53MT - usagold.com msg#: 52949) Russian Gold justamereBear (05/02/01; 19:38:27MT - usagold.com msg#: 52941)Tree in the forest 52938I engaged my Russian wife last night in a conversation about gold jewelry...and she was absolutely of the opinion that Russian gold was "much more expensive, and much more beautiful" (i.e. an nice jewelry piece had in the good days when all had jobs already cost two months salary)...Beauty is in the eye of the beholder...and since my wife is beautiful did I have the heart to try to explain to here that at spot all gold should be the same???Poor old Solomon grostig (05/02/01; 21:16:12MT - usagold.com msg#: 52948) Help buying EURO calls. Hi,I've got physical gold, but want to play with some paper.I want to buy a call for the EURO, believing it will rally sharply in the future. Current price is about 0.90 and I expect it to go above .95 and then to $1.20.I have $3000 - $5000 to speculate. I am considering at the money or out of the money calls (to get more contracts and leverage? I believe??). The volatility skew is a concern over .95 or so? I am thinking of June Sept or Dec 01 expirations, but don't know how to look at the vega to determine which is better. If I loose this money I will put more in, expecting that it will happen eventually.I will trade tomorrow at 0.92 Sept01 unless I get other advice. Any help is truely appreciated. Peter Asher (05/02/01; 21:07:28MT - usagold.com msg#: 52947) @ Ellwood re harnessing human kinetics. One major source which was overlooked could be harnessed by installing inverse walking beam generators under -------- auspec (05/02/01; 20:57:35MT - usagold.com msg#: 52946) Hey Silver Sops! http://www.gold-eagle.com/editorials_01/flett050301pv.html From Robert Flett @ GE:"Out of curiosity, I called a number of local bullion dealers for quotes. In addition to price variations of up to 30% from one dealer to another for silver coins ......, all stated that they were having great difficulty getting silver bars. One dealer stated that they had stopped taking orders for 100 oz. bars as they had such a long waiting list. Is this a result of refiners holding back supply because of the current low prices, or is there a supply/demand problem building faster than we anticipated?""Was astounded to learn of the overwhelming influence of derivatives in gold trading...50 times the size of the physical gold market, and that a similar ratio exists in silver trading. Derivatives also play an even greater role in currency trading and could suddenly cause the dollar to head south, while gold and silver head in the opposite direction." ENDComments: Nice derivative trading, no? I priced VG Morgan and Vg Peace dollars today. The Peace were $8.20 and the Morgans were up to $8.91. Each contains approx. .77 oz. of silver so this becomes a fairly hefty premium over spot. May as well give a plug for the house while here------ Great prices and service on silver bags! Thanks,Get it, it's happening. Canuck (05/02/01; 20:25:30MT - usagold.com msg#: 52945) Silver http://www.kitco.com/charts/livesilver.html Looks like silver was a wee bit busy in N.Y. today. Tree in the Forest (05/02/01; 20:21:22MT - usagold.com msg#: 52944) J' Bear You misquote me sir J Bear! What I said and still say, is that arbitrageurs will arbitrage a price difference if there is a profit to be made. There are conditions that can stop them like a totalitarian government with import/export restrictions etc. I think that applies in Russia where markets are still controlled. I am sure Michael wouldn't mind getting twice the price for his gold coins if it could be done. If he could sell into Russia (or Europe for that matter) at a significantly higher price, we would soon find he had little gold left for sale here. Having said that, shipping and import duties can be a factor in determining a final sale price. Modest differences can exist but big differences won't exist for long under normal circumstances. Energy in California is an interesting example. I bet power generators in adjacent states would love to sell energy to the grasshoppers at two or three times the local price, if they have it available and if they could be assured of getting paid. Transmission costs must be factored in. When they sell their energy in CA, local prices rise. Less energy available locally, more in CA. Prices tend to equalize. Of course now, they have to factor in the cost of default in CA. Also we have market restrictions imposed by a government, forced selling by another government, in short, a mess. But under normal conditions, costs gravitate to equalization. Elwood (05/02/01; 20:06:10MT - usagold.com msg#: 52943) On a slow news day we make our own http://www.britneyspears.ac/lasers.htm LOS ANGELES (AD) – California lawmakers today hailed a new bipartisan plan for dealing with the state's onerous energy shortages and soaring electricity prices. The plan, introduced yesterday in the state house, calls for replacing nearly all of the natural gas and other fossil fuel power generating facilities with "human effort." Exact details of the plan have yet to be made public, but information gained by this reporter through leaks, bribes, blackmail and outright intimidation has allowed news organizations to fill in many of the gaps.The plan calls for the strict regulation and regulatory oversight of all health clubs, workout facilities, gyms and even public and private school physical education classes. All Californians, many of whom work out regularly at their local health facilities or just have a jog in the park will now be required to "register" all such activity and perform it in state designated areas such that the heretofore wasted effort of their strenuous activity can be channeled into the production of electricity for the state. The bill requires that all exercise equipment be redesigned or retrofitted with power-generating devices and plugged into the state's power grid by 5:00pm Friday afternoon in time for the "weekend warrior" sessions.In unveiling their plan lawmakers will also reveal many of the state-certified devices which will be used for carrying out this new policy. From information gained from these insiders this news organization has learned that the devices are fairly new and ingenuous in nature. "They've thought of everything," one member of the energy commision admitted under condition he remained anonymous, but his wife, Mrs. Jones, readily agreed. "They've got little doodads that you have to clip to your roller skates and will power a whole light bulb on a downhill," she was overheard giggling. "…and you should see what they've done to those tennis balls."Many celebrities have signed on to the effort. Jesse Jackson has re-invogorated his followers by promising to bring back "Black Power." The Screen Actors Guild have created their own "Star Power" organization and are milking it to the hilt. Environmentalists and animal rights activists, all eager to get on with the business of fighting cruelty to the environment, have join in. One member was overheard stating, "You should see what we have for all those dolphins we've saved. Just one pod of those suckers can power a whole house for a month."Further developments to follow….. Tree in the Forest (05/02/01; 19:54:02MT - usagold.com msg#: 52942) Auspec, Trail Guide Auspec: "Some of the items we so generously lend out never find their way back, right? I'm still waiting for a chainsaw, but no longer include it in my list of tools {ha}."LOL! I guess I have some stuff to write off too! As to whether or not CBs still have their gold I would bet they still have most of it, though I certainly can't prove that. Even the US with their "custodial gold" which now supposedly belongs to someone else, still has it in their possession! Admittedly, we haven't had an audit of our gold in several decades but hey, we trust them right? <grin> We do still have mines and scrap recovery supplying physical gold. And the CBs have probably been forced to lease out some gold to continue supporting the dollar. I guess the real question is how much gold has been leased by CBs? If it's almost half as you say (15,000 tonnes) then these bankers are in deep doo doo. If the you know what hits the fan, I wouldn't want to be a central banker who had to face the music because a lot of gold is missing. What would really be interesting is if the ECB really doesn't have the gold they claim to have backing the Euro. Can you imagine if it was all paper promises? Paper backing paper! Hey Trail Guide, do these guys have any physical gold left or has it all been leased? When was the last time the ECB vaults were audited? Thanks for your help. justamereBear (05/02/01; 19:38:27MT - usagold.com msg#: 52941) Tree in the forest 52938 You say that in todays world it is near impossible for a two tier gold price to exist.Try Russia over the last 10 years. The world price was running either side of US$10 (up to 12) per gram. That is what the government was getting for its official holdings as it tried to control the economy. At the time when the government changed its modus operandi, they were getting about $12/gram, internationally. When they announced the change, the "secretary of the treasury" equivilant said, "we are going to sell internally, we can get US$20 per gram on our own black market." (not to mention that they can ultimately grab it back)So in their system they had the Ruble, a de facto US dollar exchange, and a gold exchange. Strongest arguement I know for owning precious metals. The supposedly rock solid USD was being beaten, hands down, 2 to 1 almost, by gold, in a time of trauma and uncertainty. The local fiat currency had gone to zero, effectively. Extrapolate what might happen if the USD goes to zero?j'Bear Randy (@ The Tower) (05/02/01; 19:08:49MT - usagold.com msg#: 52940) Pesos STRONGER than dollars???? It could happen. http://biz.yahoo.com/rf/010502/n02356261.html With the Argentine Congress set to debate the bill to make the euro an equal partner with the dollar in the 10-year-old currency peg, the peso could actually outperform the dollar if the country can keep its fiscal house in order.While open to debate and alteration, as orignally conceived, the bill introduced by Economy Minister Domingo Cavallo intends to replace the old currency peg requirements of one U.S. dollar held in reserve for each peso in circulation. The new peg calls for a replacement of half of the dollars in reserves with euros, designed to be implemented when the euro attains exchange parity with the dollar.And to those sitting on the sidelines pondering the future value of the dollar on the world scene, those involved in the debate seem to take as a foregone conclusion that the dollar will fall relative to the euro to bring about the precipitating condition of parity. Further, the old proposals for "dollarization" of the Argentine economy are now being seen as a path equivalent toward peso devalution because, in the words of the article, "the euro is likely to outstrip the dollar in strength eventually."You surely strive earnestly for your income. You may be content to hold it in the form of paper which can fail suddenly under the management of others; OR, you might rather prefer to hold the timeless wealth of kings and thereby be a "man of gold" with a fistful of integrity. Resolve now to give Centennial a call and claim the wealth you've already earned. auspec (5/2/01; 17:31:34MT - usagold.com msg#: 52939) Tree in the Forest/Salmon CB Gold Hello Sir Tree {sounds new-age, doesn't it}. I have only been around 1 year and have yet to see Salmon's question answered satisfactorily as far as depletion of CB gold. Per your response: "I think we have concluded (with Trail Guide's considerable help) that the bulk of the CB sales have just been CBs passing gold back and forth between themselves."I still don't get it as to where all the vast jewelry supply comes from if that is indeed the case. It is not paper gold adorning all those lovely limbs and appendages and it has to originate from somewhere. Maybe it's someone else's "short gold", but the gold lovers now have 100% posession and someone else has a potential problem. Certainly the CBs play the gold reshuffling game, but we must remember that CBs count lent/leased gold as though it were still in their posession! So what is their TRUE gold position? They say 32,000, but reality issomething else entirely. Some of the items we so generously lend out never find their way back, right? I'm still waiting for a chainsaw, but no longer include it in my list of tools {ha}.So, the question becomes; If the CBs still have all their gold on the whole, where has all the industrial, monetary and jewelry gold supply come from? Until convinced otherwise I believe the CBs have compromised somewhere near 15,000 tons of the yellow dog. They may get it back as gold in the ground with their predatory practices of M&As, but these leased ounces/tons are now in the hands of others! The only other answer that makes sense is that there are large amounts of unaccounted for gold AVAILABLE as supply to markets. Who really knows about this POSSIBILITY? So:1. The CBs are short.2. Gold demand has been and remains extraordinary. Of course when investment demand really kicks in....Thank you, Sirs! I am totally open and ready to be convinced otherwise if the info is put forth.auspecfully Tree in the Forest (5/2/01; 16:08:28MT - usagold.com msg#: 52938) Netking, Salmon, Peter Asher Netking: There have been times when different PM markets had different prices. I am thinking specifically of the Dubai gold market in the 30's-40's(?) when gold was priced higher than London. However these days, communication and transportation is much better. Market price differences cannot significantly exceed transportation costs for very long without the difference being arbitraged. The only exception to that would be a war or some kind of force majeure where import/export/transportation is restricted. War is a distinct possibility. So the answer to your question is a definite maybe.<grin> Does that help?Salmon: You asked:"Since I first started following the gold market back in 1995, I read various publications quoting that 32000 tons was owned by Central Banks...Yet, today we are still quoted that 32000 tons are in the possession of the Central Banks and some even state 33000 tons. Most of the gold sold (80%) according to World Gold Cancel was sold to jewelry producers.Am I missing something?"Sorry for being flip (I'm a wiseguy...it's my job) but you are definitely missing something. You are missing the innumerable discussions over the last several years on this board during which we have pretty much beaten this subject to death. But I don't expect you to review several years of discussion! I think we have concluded (with Trail Guide's considerable help) that the bulk of the CB sales have just been CBs passing gold back and forth between themselves. Makes it look like nobody wants gold but since they still have all of their gold, that must be false! So they drive down POG without losing anything. Isn't that nice of them?Peter Asher: You said:"From business school graduate who "raised a few hundred thousand dollars from family and friends and nearly tripled his money the next year by buying many of the bull market's hot new technology stocks." then "went from driving a Porsche Boxster to being unemployed virtually overnight."Me: It's funny but sad too. Like the guy whose stock options went to $8 million and now are down around $1 million. Don't these guys ever take profits? Haven't they ever heard of stops? If the bozo had taken a 1 million profit and then put some stops in (even generously low!) he'd still have over half his money. Like youth is wasted on the young, money is wasted on the rich (albeit temporarily rich). R Powell (5/2/01; 15:28:09MT - usagold.com msg#: 52937) One and one half fer day Quiet day. POG up slightly, XAU down just a little and short term lease rates down/ longer term rates up, again just slightly. Better luck tomorrow? Rich IronHead (5/2/01; 13:16:11MT - usagold.com msg#: 52936) Meet The New Boss - Same As The Old Boss? For anyone hoping Dubby Jr. will cast a spell of enlightenment on the gold manipulation; take the following test. Pretend you've been on a remote beach for the past 6 months sipping maitais, and are not aware of the election outcome. Please note; IronHead has NO political ofaliation with any party of a demo-lican nature, whatsoever.12 question test to differentiate whom won the recent presidential election; note - after first 100 days in orifice.1) If elected president, which one would boost Slick's Americorps program by $282 million? 2) Which one would continue Slick's lawsuit against tobacco companies? note: John Ashcroft has indicated that the justice dept. is willing to spend as much as Reno's dept did in pursuing this matter. source - Wahington Times April 27, 2001 3) Which one would increase federal elementary and secondary education spending by 72%? 4) Which one would maintain the so called "Gore Tax", a $2.3 billion levy (tax) on telephone bills, used to wire schools to the internet?5) Which one would request a 3.6% pay hike for all federalist workers? IronHead - have to keep those federalists on top of inflation, no? Oh, there is no inflation....Hmmm.6) Which one would impose the decree by Slick's admin. to implement the medical "privacy" rules, which give the grabbit your medical records?7) Which one increased spending for Public Broadcasting Corp. by $10 billion?8) Which one would bar development on privately owned wetlands, in continuation of Slick's "wetland" agenda? 9) Which one vowed a renewed commitment to America's gun laws? footnote: Attorney General Ashcroft said " no question" we need "renewed commitment" to enforce the nations myriad gun laws, and has requested $158 million additional funding for that purpose. source Washington Times, April 27, 2001.10) Which one would spend an additional $46 billion on a federal program to give low cost prescription drugs to seniors? IronHead - heck, let em grow their own.11) Which one would deffer privatization of Social Security to a special commission for study? note: same one who made privatization of Social Secrutiy a cornerstone of his campaign.12) *IronHead's favorite* Which one would propose a $400 million dollar increase for the grabbit's tax collection arm, to increase the payroll by 4000 people?So, if I've guessed Algore for any of the above questions, wrongo. I might even think Dubby is one of "us", and he is ready to support a free gold market, free of uncle grabbit's intervention in a free market society. Wowsers, am I stupid, or am I stupid? Think I'll be heading back to my island to finish the maitai.Salutations,IronHead Randy (@ The Tower) (5/2/01; 12:28:06MT - usagold.com msg#: 52935) Fed buys Treasuries, adds permanent and temporary reserves The Federal Reserve today added $470 million in permanent reserves to the banking system through the outright purchase of Treasury coupons (dated Nov. 2021 to Feb 2029).Also today the Fed added $4.25 billion in temporary banking reserves via overnight Rp's. beesting (5/2/01; 11:14:56MT - usagold.com msg#: 52934) Early Use of Gold Coins in California. Someone recently posted that the state of California would rank as the 6th(?) wealthiest nation on earth if it was an independent nation. Below may be one of the reasons.""A FREE MARKET IN GOLD""!From Congressman Ron Paul's "Money Book", start quotes: Perhaps in the future we need to consider a free market money, allowing consumers to decide about their money the way they decide about everything else. Hans Sennholz and Friedrich von Hayek argue for this system. And it existed at one time in our country.In California, during the 1840s and 1850s, many privately minted Gold coins circulated. The practice was outlawed in 1864,'but as late as 1914", points out Anthony Sutton," the U.S. Treasury was still trying to halt the circulation of private Gold peices in San Francisco. "Why were such coins still circulating? Because the private mints maintained higher standards than the government mint. Often, points out Dr. Sutton, they were one percent heavier than government issues,"to protect the user from metal loss by abrasion while the coin was in circulation."Private mints held to a higher standard because they were protected by their reputation. They could not force consumers to take sub-standard money by force of law, as government can.The north financed the Civil War with hundreds of millions of dollars of Greenback notes, and as a result prices more than doubled from 1861 to 1865. During the Greenback inflation, people in California continued to use Gold as money."In California, as in other states," points out Frank Taussig,"paper was legal tender...", that is,people could be forced to accept it. Although there was no antipathy towards the Federal government, people believed strongly in Gold."Every debtor had the legal right to pay off his debts in depreciated paper. But if he did so, he was a marked man(the creditor was likely to post him publicly in the newspapers)and he was virtually boycotted. Throughout the period,paper was not used in California." End of Quote.Comment:For 50 years after private Gold coins were outlawed the people of California still continued to use them, that must be why Roosevelt made his confiscation laws so harsh 19 years later. Thanks for Reading....beesting. Peter Asher (5/2/01; 10:35:17MT - usagold.com msg#: 52933) Ha ha ha, he he he he, help me stop laughing! http://www.nytimes.com/2001/05/02/technology/02WALL.html "I was taught at N.Y.U. that market prices are reached in efficient markets, and they weren't polluted by market manipulation."From business school graduate who "raised a few hundred thousand dollars from family and friends and nearly tripled his money the next year by buying many of the bull market's hot new technology stocks." then "went from driving a Porsche Boxster to being unemployed virtually overnight."Link above for : " Complaints Challenge Fairness of Late 1990's Boom in I.P.O.'s"" Black Blade (5/2/01; 07:19:48MT - usagold.com msg#: 52932) MO VER MEG Thanks, I try to accomodate. The Energy Crisis and gold will likely prove to be closely entwined. It could all break loose in the next few months (maybe sooner). Now I think that I will follow elevatorguy's advice and get some sunlight to mitigate my vitamin D deficiency ;-) MO VER MEG (5/2/01; 06:58:44MT - usagold.com msg#: 52931) Black Blade I try to read a large variety of daily energy/gold articles. I usually read the best first - that is why I begin with your postings. Thanks, I am listening.MO VER MEG Black Blade (5/2/01; 06:24:39MT - usagold.com msg#: 52930) Where there's gold there's fire http://cbs.marketwatch.com/news/story.asp?column=Thom+Calandra's+StockWatch&siteid=mktw Snippit:LONDON (FTMW) - Some professional investors are questioning the traditional belief that gold - and gold mining shares - can only rise as the U.S. dollar declines or as inflation accelerates. Black Blade: Good Thom Calandra Gold article this morning. I suggest that everyone take a look and ponder this one.elevator guy - I hear ya! I hope to nail a turkey this weekend. Got only one this year and one more to go. elevator guy (5/2/01; 06:07:12MT - usagold.com msg#: 52929) @Black Blade, re: post (5/2/01; 01:16:43MT - usagold.com msg#: 52925) Hello Sir Blackblade, Me thinks thou needeth to step away from thy computer, and gettest thou a breath of fresh air, and perhaps to bask in the sunshine for a spell. It appears that this CB thing has so absorbed your thoughts, that the issues are mixing with your baser emotions!<snip>Generally CB sales are nothing more than paper swapping (like a sloppy drooling open-mouthed kiss).<unsnip> (The above is intended as good-natured ribbing. Its always hard to do this without body language, intonation, etc) SALMON (5/2/01; 06:00:58MT - usagold.com msg#: 52928) Open question Since I first started following the gold market back in 1995, I read various publications quoting that 32000 tons was owned by Central Banks. Six years later the Bank of England sold half of its holdings and other countries like Switzerland, Greece, Mongolia, Brazil, Venezuela, Uruguay, Austria, The Netherlands, Jordan, UAE, Zimbabwe, Malaysia, Kazakhstan sold part of their holdings. Some countries like Canada and Australia sit with totally empty vaults.Yet, today we are still quoted that 32000 tons are in the possession of the Central Banks and some even state 33000 tons. Most of the gold sold (80%) according to World Gold Cancel was sold to jewelry producers.Am I missing something? Netking (5/2/01; 03:55:33MT - usagold.com msg#: 52927) Silver - geographical disparity of price Silver crew, a discussion I heard thrown around: How much of a disparity of price do think there will be between different world zones after "silver is loosed from the strong man" and we see levels like the 1980 high surpassed?. Are we going to see the UK, USA, France, Australia & Mexico etc(as an example)all selling at similar USD prices or will we see a number of different sub-markets forming with national price structures in place based on compound investment/industrial demand. Obviously with possible confiscation "in the national interest" as potential issue(in one or two countries) and price fixing/regulation you could gain another disparity in price again yes? Black Blade (5/2/01; 01:46:28MT - usagold.com msg#: 52926) NAPM: Industrial Outlook Worst in Decades http://biz.yahoo.com/rb/010501/business_economy_napm_outlook_dc.html Snippit:ORLANDO, Fla. (Reuters) - U.S. manufacturing executives are more pessimistic about the 12-month outlook for their sector than in nearly four decades, the National Association of Purchasing Management (NAPM) said Tuesday.Black Blade: Recession around the corner. Come on Cheetah (AG) - throw us a 100 basis point banana! I prefer a different kind of yellow. Black Blade (5/2/01; 01:16:43MT - usagold.com msg#: 52925) AngloGold raises prospect of lowering hedge further http://m1.mny.co.za/MGGold.nsf/Current/4225685F0043D1B242256A3F005F074A?OpenDocument Snippit:Godsell said one of the reasons why producers hedge gold in relatively high volumes is that the central banks have 32 000 tonnes of gold in their vaults which they are keen to manage. "In hedging, in lending the gold which makes hedging possible, they (the central banks) earn a modest return. "If everybody stopped hedging, would the central banks simply sit on the gold with no return whatsoever, or would they be more inclined to sell. I'm inclined to the latter line of reasoning," he said.Black Blade: Bobby, Bobby, Bobby. Come on now. These clowns generally sell to each other not in the open market and only then out of necessity. Even the BOE auction sells only to a select club by invitation only. Generally CB sales are nothing more than paper swapping (like a sloppy drooling open-mouthed kiss). Few actual physical sales ever take place. The whole point of keeping gold reserves is for diversification of monetary reserves and for insurance. The World's largest reserves in the US, IMF, etc. are not sold for good reason. AG states that gold is the currency of last resort. In other words - gold is the ultimate currency. Black Blade (5/2/01; 00:45:52MT - usagold.com msg#: 52924) Energy officials fear a powerless May http://www.contracostatimes.com/partners/nf/maypower_20010501.htm Declining energy supplies, plant closures and rising temperatures could make for a dark monthSnippit:SACRAMENTO -- California's journey through a difficult summer of blackouts begins with the start of May, a month state officials concede is a dangerous and unpredictable prelude to what lies ahead. And they have reason to fear. The state's electricity supplies are waning, thanks to a slew of plants going down for maintenance or repairs at the same time temperatures are rising and peak power demand is expected to jump by 32 percent.Black Blade: Also factor in Diablo Canyon Nuclear Plant shut down for 35 days for maintenance, and low snowpack in the Sierra's among several other potential problems and political miss-steps. The Kalifornia economy to hit the skids. Black Blade (5/2/01; 00:36:10MT - usagold.com msg#: 52923) Dems Oppose Calif. Energy Plan http://dailynews.yahoo.com/h/ap/20010501/pl/energy_environment_4.html Snippit:WASHINGTON (AP) - House Democrats called a GOP energy plan aimed at helping California ``an assault on the nation's environmental laws'' Tuesday and said it does little to ease the state's impending summer power shortages and soaring electricity prices. Also of concern to environmentalists is a provision that - upon the request of a governor - would allow hydroelectric power producers in an electricity emergency to run dams at maximum output, overriding federal rules and court decisions for protection of fish such as several Northwest salmon protected by the Endangered Species Act.Black Blade: The California Grasshopper looks to be endangered. Blackouts this summer is a foregone conclusion at this point. A consequence of not taking prudent precautions. "…and they danced, sang, and played all summer…" Black Blade (5/2/01; 00:26:13MT - usagold.com msg#: 52922) Newmont gets temporary relief from rising power costs http://biz.yahoo.com/rf/010501/n01150705.html Snippit:DENVER, May 1 (Reuters) - Newmont Mining Corp. (NYSE:NEM), North America's biggest gold producer, said on Tuesday it has been granted temporary relief from rising power costs in the U.S. Southwest that has handcuffed many companies. Newmont, which has three mining operations in Nevada and is the state's biggest power user, said the state legislature recently froze the company's electricity rates at 6.6 cents a kilowatt hour for the rest of the year, easing fears that rates could climb as high as 7.5 cents per kilowatt hour by the end of the year.Black Blade: More Mining and energy costs news. A minor reprieve perhaps. It does illustrate how much power is involved when one would think that some of Nevada's mega-casinos consume a large amount of energy. Newmont has the world's 2 largest autoclaves to process refractory ore and that alone consumes huge amounts of energy. Eventually they will have to pay higher prices for their energy. They have also recently announced plans to close several exploration offices as well. Looks like more gold production to be withheld from the market. ViewYesterday's Discussion.
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