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Welcome to the USAGOLD Gold Discussion Archives. The archives of this gold discussion forum are a treasure trove of information to educate investors about protecting their wealth through portfolio diversification with private gold ownership. The discussion forum also covers the wider issues of the past, present, and future role of gold in international monetary policy and the dynamics of the modern gold markets...   (Discussion Forum Hall of Fame) (The Gold Trail) ("Thoughts!" by ANOTHER)   The opinions posted by all guests are expressly their own and do not necessarily represent the views of the management or staff of USAGOLD - Centennial Precious Metals. The hosting of the public discussion shall therefore not be construed as an endorsement by USAGOLD - Centennial Precious Metals of any of the opinions posted here.

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ARCHIVED DISCUSSION FROM 1/23/2002
All times are U.S. Mountain Time

(Yesterday's Discussion.)

Yukon (1/23/02; 23:27:17MT - usagold.com msg#: 68738)
@ Christian, msg # 68689
Christian,

Looking for a safe haven for your fiat dollars? I assume this is the portion you intend to keep in paper form. For if not, then nothing could be safer than a metals purchase from our host; Centennial Precious Metals. However, if this is the portion to be kept in FRN's, then I must admit that I was in a similar situation not long ago. After a quick check with bankrate.com you should be able to find the FDIC insured safest "account" you need/desire, especially since you emphasize safety of principal before return on principal.

Personally, I have an ING DIRECT savings account that claims to maintain a rate of return among the highest in the nation (currently at 3.5%APR, but subject to move up or down as rates dictate) for my fiat. The nice thing about these accounts is that they can be linked to your money market or checking account thereby making transfers to and fro as simple as a key stroke on your keyboard. Granted, 3.5% is not much higher than your 2.7% money market, but in this present environment with an eye towards safety, I know of no other alternative other than the precious metals we all love and trust. Hope this is helpful, yet not in violation of any "rules".

Regards,
Yukon

A Canadian (1/23/02; 22:38:22MT - usagold.com msg#: 68737)
@ BLACK BLADE

You're still the man! (developing a cult following in Montreal) Diligence and insight greatly appreciated. You put mainstream media to shame....

Waverider (1/23/02; 22:32:05MT - usagold.com msg#: 68736)
Japan Has Plan to Fix Banks, but Does It Have the Will?
http://www.iht.com/articles/45773.html
Snippit:
"The pieces are all in place to aggressively tackle Japan's massive banking problems. A high-powered team - composed of the prime minister, the chief cabinet secretary, the Finance Minister, the governor of the Bank of Japan and the country's two top financial regulators - is ready to sweep into action. The group - known as the Financial Crisis Management Conference Board - has authority to nationalize banks, spend tax money to prop them up and pay off depositors. All that is needed is an official declaration that the banks are in crisis. But Japan's financial brain trust refuses to utter the dreaded word."

Waverider: Quite a worthwhile read outlining the impotence of the most powerful Japanese financial players to even mutter the words "banking crises" because of the dire systemic consequences.

A Canadian (1/23/02; 22:31:40MT - usagold.com msg#: 68735)
@ROBOT GUY

Am greatly enjoying your evolution, when "true wealth" is digested (cheap window rapidly closing), you'll no longer give a flying @#$% about value of loonie! Get physical to "Fort Knox" your family, Buy shares to ride the poney!
IT'S ALL GOOD.

Elwood (1/23/02; 21:30:00MT - usagold.com msg#: 68734)
Madness
http://quote.bloomberg.com/fgcgi.cgi?touch=1&btitle=Top%20News&T=sa_content.ht&s=APE8s8RaaQXJnZW50
http://quote.bloomberg.com/fgcgi.cgi?touch=1&btitle=Top%20News&T=sa_content.ht&s=APE8s8RaaQXJnZW50

Canuck (1/23/02; 20:35:11MT - usagold.com msg#: 68733)
@ slingshot
Hey brother, I'm going be nice and gentle with 'ya.






Your message is cool but your poetry sucks!





;)

slingshot (1/23/02; 19:59:47MT - usagold.com msg#: 68732)
Canuck Msg#68728
New York, New York a hellofa town.

Home of Fiat that makes the world go round.

Can't have Gold, which shines so bright,

Prove them wrong and makes thing right.


Plenty of power for one city in the world, for sure. WHY?

Slingshot

Black Blade (1/23/02; 19:58:36MT - usagold.com msg#: 68731)
Xerox Cutting About 530 Jobs
http://biz.yahoo.com/apf/020123/xerox_cuts_1.html

Snippit:

Xerox Corp. Is Eliminating About 530 of Its 11,500 Jobs in the Rochester, N.Y. Region. The company has cut 11,000 jobs since October 2000 but has not specified how many more jobs will be eliminated.

Black Blade: More "Bones" sacrificed at the alter of "downsizing". "Grim"


Black Blade (1/23/02; 19:48:35MT - usagold.com msg#: 68730)
GE Transportation Cutting 1,100 Jobs
http://dailynews.yahoo.com/h/ap/20020123/bs/ge_transportation_layoffs_1.html

Snippit:

ERIE, Pa. (AP) - GE Transportation Systems will cut about 1,100 jobs, including 900 at the locomotive maker's operations in Erie.

Black Blade: Casey Jones "Bones" off to the "Bone Pile".


Black Blade (1/23/02; 19:42:28MT - usagold.com msg#: 68729)
Enron CEO Kenneth Lay Is Resigning
http://biz.yahoo.com/apf/020123/enron_lay_5.html

Snippit:

Enron Corp.'s Chairman and Chief Executive, Kenneth L. Lay, Is Resigning From Energy Company.

Black Blade: I guess this means he is "leaving to pursue other interests" as they say. This really does not come as a surprise. Many former Enron employees are even wearing T-shirts with the words "I got Lay'd at Enron". The saga continues. Think he has a "Golden Parachute"?


Canuck (1/23/02; 19:36:12MT - usagold.com msg#: 68728)
Telling tale ongoing
Interesting black line over at Kitco right now.

Gold opens the day (00:00 Easten) at roughly 281.50 +/- a couple nickels and runs this pattern for 8 1/2 hours until NY opens. Gold is then slammed for nearly 3 bucks closing at 278.80. Gold, since 2:30 eastern (6 hours later) is flatlined at 278.80.

Now I ask you a very simple question, what is it about gold that NY hates with a passion?

;)

Canuck.

Black Blade (1/23/02; 19:22:06MT - usagold.com msg#: 68727)
Production cuts talk and reduced refinery runs affect prices
http://ogj.pennnet.com/articles/web_article_display.cfm?ARTICLE_CATEGORY=TOPST&ARTICLE_ID=133267

Snippit:

HOUSTON, Jan. 23 -- Energy futures prices rebounded in international markets Tuesday with talk that the Organization of Petroleum Exporting Countries is not only curtailing oil production as promised but might consider another reduction in March.

Black Blade: Many US refineries are shutdown or are soon to be shutdown for scheduled maintenance. A couple of other refineries are still shutdown after explosions and fires over the last month. Oil prices appear to be poised to increase.


Siochain (1/23/02; 19:21:00MT - usagold.com msg#: 68726)
One Year Later
http://www.gold-eagle.com/gold_digest_02/stott012502.html
Interesting comparison of a column written a year ago entitled "Diary of a Depression" with subsequent events

CoBra(too) (1/23/02; 19:13:11MT - usagold.com msg#: 68725)
POG - is taking a Sabbatical ...
... and so do I - See you at 350 - $'s per Oz - in due course - or the curse is on the PPT - ...

... can't figure any new synopsis of the old theme - aka burn out syndrome - as my g.m. stocks are flying - wonder why POG is not complying? YET! You Bet!

Anyway, take care and may see you again, if the good Lord is willing, north of 350!

Best - cb2

Siochain (1/23/02; 19:08:50MT - usagold.com msg#: 68724)
@Black Blade
Thanks for the great article...and from Morgan Stanley, too!!!

Black Blade (1/23/02; 18:55:37MT - usagold.com msg#: 68723)
Global: A World Turned Inside Out
http://www.morganstanley.com/GEFdata/digests/20020122-tue.html#anchor0

Snippit:

By our estimates, America's current-account deficit should hit 6.2% of nominal GDP in the second half of 2003, in excess of $660 billion. In dollar terms, this would break all global records. It does the same in percentage terms for the modern-day US economy. America's previous record current-account deficit was 3.4% of GDP back in 1987. That required external financing to the tune of $161 billion, less that one-quarter of what we believe will be necessary in 2003. Putting it another way, the last time the United States was in this predicament, it had to attract about $1 billion of foreign capital about every two days. If our forecast is correct, the US will have to attract nearly $2 billion of foreign capital every day in 2003. Back in the mid-1980s, we all suspected something had to give. The focus then was on an overvalued dollar. And, of course, that's exactly what did give -- as the greenback plunged some 50% on a trade-weighted basis from early 1985 to the fall of 1987. I suspect a similar fate is in store for today's overvalued dollar, although the magnitude of the coming decline should be smaller, mainly because the overvaluation excess (some 22% by 2003, according to our currency team) is smaller.

Black Blade: WOW! Good article worth reading. When the US economic "House of Cards" falls it will be very ugly worldwide.


RAP (1/23/02; 18:17:32MT - usagold.com msg#: 68722)
Black Blade: A lot of bones!
http://quote.bloomberg.com/fgcgi.cgi?ptitle=Technology%20News&s1=blk&tp=ad_topright_tech&refer=techtop&T=markets_frontsummary_content99.ht&s2=ad_top2_technology&bt=ad_position1_technology&bt2=blk&middle=ad_frame2_technology&s=APE8mChR3TW90b3Jv
You have probably mentioned these before, but almost 70,000 jobs needs reviewing.
Motorola Inc.:
Chief Executive Christopher Galvin has announced job cuts in 11 of the past 13 months in a plan to reduce the workforce to 101,600 by year-end from a peak of 150,000 in August 2000.
Motorola rival Siemens AG had its first profit in three quarters in the period ended Dec. 31 after it began cutting 20,000 jobs as divisions, such as the mobile-phone unit, erased losses, the company said.


Canuck (1/23/02; 18:15:46MT - usagold.com msg#: 68721)
....and....
Driving to work this am I watched the "For Lease" signs. I am in Ottawa, often duped 'Silicon Valley North'. The lease signs are everywhere. Nortel, in the last 3 years have built dozens of small and medium sized complexes here and there throughout west-end Ottawa. I counted nearly a half-dozen (Nortel only) facilities closed.

Their huge 1 year-old complex a kilometre from the Ottawa Senators 'Corel Centre' boasts a sign "Industrial Technology Facility; For Lease"

I wonder who is going to scoop that, JDS?

Major league "GRIM".

Canuck (1/23/02; 17:43:50MT - usagold.com msg#: 68720)
@ Waverider
Good job dear!

...and from the post I mentioned last week quoted from a 'securities offical' (as best as I can recall), " maybe the thought of 20 years in the can with the daily beating and weekly raping will persuade the crook to talk".

Let's cut a deal!!!

Canuck (1/23/02; 17:37:07MT - usagold.com msg#: 68719)
@ goldenpeace @ all
The drums are beating...........!!

Remember the giant retail stores Xmas 1999, couldn't move. I watched carefully this Xmas, half maybe two-thirds of the traffic.

I went to Wal-Mart, Canadian Tire and a dozen other places looking for a specialty item tonight. The stores were deserted, really deserted. Wally-world had 5 cashes open (of 14) and 3 cashiers were beckoning customers into their empty line-ups. I bet there wasn't 100 people in the whole store.

Eerie, spooky.

1Q02 will be disastrous.

Waverider (1/23/02; 17:30:42MT - usagold.com msg#: 68718)
Fired Enron auditor refuses to testify
http://usatoday.com/money/energy/2002-01-23-enron-auditor.htm#more
"The Arthur Andersen auditor fired after Enron documents were destroyed will invoke his right to take the Fifth Amendment and not testify to Congress unless he is given immunity. David Duncan, the former lead partner for Andersen in Houston, was served a subpoena Wednesday, but his lawyer Robert Giuffra wrote a letter to a House Energy and Commerce subcommittee, saying Duncan "will rely on his constitutional right not to testify." Congress could require that Duncan appear, but it cannot force him to answer incriminating questions without granting him immunity from criminal prosecution."
Waverider: Canuck - I think this is what you're looking for. Gotta run. Cheers.


Canuck (1/23/02; 17:18:59MT - usagold.com msg#: 68717)
Headline News
Just saw the 'Headline News'; Enron executive wants protection to spill guts!!!

Any news?

CoBra(too) (1/23/02; 15:52:24MT - usagold.com msg#: 68716)
Mr. Independence's Wisdom ... Debt Crisis Ballooning...
Martin Weiss, the master of seeing through the ballyhoo, graciously has written this report for Daily Reckoning.

Though cb2 feels, there's a serious emission to the story, which puts Enron, Argentina and Japan to the test of being the debt bombs of the globe.

The emission seems to be the US of A and its $-Reserve currency, which has led to this fray of systemic monetary decay.

And as some may say, that the US of A has been the motor of global economic growth, due to going into unprecedented debt on all levels, by way of supremacy reserve currency printing presses, others would suggest in dismay, that was exactly the cause of the economic disarray!

... and considering that only just 7% of the globe's population are consuming about 50% of its resources, paid by (piper's) sheer paper, it's a sheer miracle that the scam is still ongoing. Steve Roach is implying a 6,2% current account deficit re GDP in 2003, which means 2 Billion $'s have to be funded by the rest of the world on a daily basis.

Well, thank you, why should I? ... Spring in the air - as two polish guys met at Central South - trying to polish up their English and being rather reticent about the season.

As the article finds Japan as the major debt culprit, with the Euro Zone not far behind, I'd argue wait for the Chinese Dragon to show its real teeth. ... and the the Enron's, Argentina's and assorted dominoes are just the minnows as JPMC, UBS, DB and THE IMF - holding most of the debt - may suggest.

... IT STILL IS A GREAT ARTICLE ...

* * * * * * * * * * * * * * * * * * * * *
The Daily Reckoning PRESENTS: Dr. Martin Weiss explains why Argentina's default is but a sneak preview of debt crises around the globe and why Enron-like time bombs still await U.S. investors in 2002.

NO TIME TO BE SWAYED
by Martin Weiss

By the time Enron went belly-up late last year, its stock price had cratered from $90 to 26 cents a share. Over $66 billion in capital - and almost every single penny invested by 58,920 investors - was wiped out.

It was the largest bankruptcy in US history.

When Argentina announced in the last days of 2001 that it was officially defaulting on its $155 billion in debts, it devastated the assets of hundreds of banks and tens of thousands of investors around the world.

It was the largest debt default in the history of the world.

Now, despite all this, Wall Street is telling you that "a recovery is around the corner" - that it's once again time to spend with passion...or buy with lust.

They're lying through their teeth.

I just returned from South America, where I had a ringside seat to the collapse of Argentina. Larry's just back from Asia. Our staff has been scrutinizing the balance sheets of thousands of other corporations at high risk of failure.

I can tell you flatly: This is going to be a global disaster. The flood of bankruptcies and defaults has barely begun.

And the stock market rally is just another hot-air balloon - hype from Wall Street and spin from Washington.

For example, they're telling you Enron's collapse is unique. Baloney! Bethlehem Steel, Phar-Mor, Polaroid, and 352 other publicly traded companies also went belly up last year. This year, companies at high risk include Ford, JDS Uniphase, Kmart, Xerox, plus 1,381 others.

They're telling you "the profit picture isn't all that bad." Oh, really? Then why did JDS Uniphase announce the largest loss in U.S. history last year? Why did AOL just announce write-offs that will smash the JDS record?

They're trying to get you to believe that Argentina's collapse is "isolated." I'd prefer to believe in Santa Claus and the tooth fairy. The reality: FleetFinancial, J.P. Morgan Chase, Bank of America, and a batch of European banks are taking big hits from Argentina's default.

At the same time, Avon, Colgate-Palmolive, Gillette, and hundreds of other companies with business in Argentina are taking big hits from Argentina's devaluation.

But that's just the beginning. Brazil's debt is over twice as large as Argentina's. Colombia's is $38 billion with unemployment close to 17%. Venezuela suffers from the same kind of overvalued currency, the same kind of recession, and the same potential for an explosive public uprising.

Japan, Indonesia, Thailand, Hong Kong, Singapore, and the Philippines are sinking fast. Europe's a mess. All suffer from ailments that are similar to Argentina's.

In fact, the collapse of Argentina is far worse than anyone dreamed possible. Even in the "worst-case scenario," those with big stakes in Argentina were expecting either a default or devaluation. Now they're being slammed with both at the same time.

This puts the bigwigs at the IMF between a rock and a hard place.

If they continue to hold back aid for Argentina, they will be blamed for looting, rioting, and even a violent public uprising, potentially causing thousands of deaths.

But if they dish out more money, a half dozen other indebted nations will be tempted to default and devalue, just as Argentina did.

How did it happen? Peel off the multiple layers of financial mumbo-jumbo, and you will see the two key forces that drove Argentina into its hellish nightmare: Debt! And deflation!

Then look back at my writings, and you will see that these are the very same explosive ingredients I've been warning you about - not just for countries like Argentina, but also for Asia, Europe, and the U.S.

Debt is dangerous. Deflation is worse - it destroys the ability of borrowers to pay back the debts. Throw the two into the same pot, and the resulting explosion can blow up the "strongest" economies, sabotage the most "astute" central bankers, and destroy the wealth of the "smartest" investors.

This is exactly what happened in Argentina.

This is also very similar to what will happen throughout the globe for the simple, irrefutable reason that many other key countries are prone to the very same twin ailments that destroyed Argentina: Debt and deflation!

Japan is the classic, paramount example, with one, huge difference: Investors can try to ignore Argentina. They cannot ignore Japan.

Japan was the technological leader of the late 20th century. It is the world's second largest economy, the engine of growth for all of Asia, and the largest investor in America. When Japan collapses, there is no force on Earth that can hold up America or Europe.

And Japan is collapsing - right now - even as I write you these words. Why? Because of...debt and deflation!

Japan's DEBTS are staggering - $7.5 trillion or 2.4 times their GDP, making Japan the most indebted industrial country relative to its size in the world, ever. Of that total, $4.3 trillion is owed by the government, 1.3 times GDP, also the worst in the world. Most dangerous of all: $1.5 trillion of the debts are held by Japan's broken banking system, burning a hole in their vaults like a nuclear meltdown.

Japan's DEFLATION couldn't come at a worse time - consumer prices down virtually nonstop for the last 24 months...bankruptcies surging to 1,800 per month, the worst in 17 years...unemployment the highest in 55 years...the economy crushed.

No, Japan is not Argentina. You won't see looters ransacking supermarkets or rioters burning furniture in Parliament. But Japan is going under just the same, in its own way, with a far more devastating impact worldwide than the collapse of a hundred Argentinas.

The first to fall in Japan's wake will be the Southeast Asian economies - Hong Kong, which like Argentina, has pegged the value of its currency to the U.S. dollar... Thailand, where bad loans have soared to a record 30% of loans outstanding...Indonesia, South Korea, and the Philippines.

Europe is in the same boat. For every dollar of GDP, the 12 nations of the European Union have piled up $1.82 in public and private debt! Corporate profits are sinking. Industrial production has fallen 4.1% in a year. Unemployment in the Eurozone is 8.4%, headed for double digits.

Nearly every nation is on the verge of a debt-and- deflation blowup, threatening to drive its economy into the gutter and its stock prices into the toilet. As a result:

* U.S. banks and investors will be slapped down or even wiped out.

* U.S.-based multinationals will get killed, their exports gutted, their foreign subsidiaries in shambles.

* Worst of all, foreign investors, who now own a whopping $10 trillion in U.S. assets, will have no choice but to begin dumping their holdings at any price.

Don't underestimate this. Earnings are the most powerful force driving the stock market. And right now, the stock market has recovered...but earnings have not!

In the second quarter of 2000, pre-tax corporate profits of non-financial firms reached a peak of $577.6 billion. Fifteen months later, in the third quarter of 2001, they had plunged 26% to $414.8 billion - the sharpest decline since the Great Depression. And despite tall promises, there is NO concrete sign of improvement.

Profits always sink in a recession. That's normal. But what we're going through today is far beyond the normal boundaries of any recession in my lifetime.

Indeed, the TOTAL results for ALL of the 4,000-plus companies on the Nasdaq was red ink last year. And that red ink was so huge, it wiped out every dime of profits the Nasdaq-listed companies made in the six years prior.

Sure, you may see some hints of improvement here and there as companies bounce back from the initial shock of September 11. But, fundamentally, the earnings picture isn't getting better for one simple reason: Deflation.

Because of deflation, companies have lost their ability to maintain their product pricing. So for a rapidly increasing number of companies, profit margins are toast.

One of the most common comments I hear from Wall Street is about the "big September bottom" - the idea that the levels of mid-September last year are the lowest we've see in many years.

If you look at the market valuations of previous market lows compared to last September's, you'll see just how cockeyed that concept really is.

In the previous 17 bear markets (going as far back as 1929!), the shares were selling at an average of 13.8 times earnings. That's relatively cheap. And that gives you an idea of what it takes to make a real bottom.

That was NOT, however, what we saw in September of last year - not even close. Instead of 13.8 times earnings, the market was selling at 21 times earnings! Conclusion: It was not the bottom.

The real bottom is yet to come, and it's going to be FAR deeper.

Martin Weiss,
for The Daily Reckoning

p.s. This is no time to be swayed by still more of the same Wall Street hype. But it's also not the time to hide in a corner. You have a unique, once-in-a-century opportunity to harness the power of a great bear market to your distinct advantage.

For advice on playing it safe in 2002 (and even making a small fortune), click here:

The Safe Money Report

Martin D. Weiss, Ph.D., the nation's leading advocate for financial safety, has helped millions of Americans with his ratings of stocks, mutual funds, insurance companies, banks, brokerage firms and HMOs. Martin has testified repeatedly before Congress, advocating full disclosure of risk to investors.

The Wall Street Journal says Weiss runs a "feisty firm," and Esquire noted that his is "the only company...that provides financial grades free of any possible conflict of interest." Forbes calls Dr. Weiss "Mr. Independence."

* * * * * * *


... Are you still wondering what the unique -once in a life-time opportunity - may be? ... cb (- got au) 2 --- see u ...



sourdough (1/23/02; 14:52:29MT - usagold.com msg#: 68715)
Re post of "JIPANGU" comments about potential of Japanese investors to move gold market

The following are excerpts from a Dow Jones News Service INTERVIEW by Jim Hawe (DJ) with Mr. Tamisuke Matsufuji, Founder & CEO of Jipangu Corp of Japan.

Tamisuke Matsufuji has developed a knack for making outlandish predictions that have a way of coming true. The president of the gold mining and investment firm, Jipangu Incorporated, and author of numerous bestsellers on contrarian investing, has forecast everything from the collapse of Japanese real estate and stock prices to the failure of Yamaichi Securities. But recently his crystal ball has taken on a decidedly golden hue. According to Matsufuji, 46, gold prices are now sitting on a powder keg - and he is expecting Japan to light the fuse. "The price of gold is ready to take off. It could go up to Y3,000 or even Y4,000 (per gram) easy...and Japan could lead the way," Matsufuji recently said in a recent interview with Dow Jones Newswires.

Matsufuji said the rally "could happen soon." Gold at Y3,000/gram is roughly equivalent to $764 per troy ounce. Gold, which hit a high of $875 an ounce in 1980, has long been languishing in the doldrums. April 2002 gold futures on the Tokyo Commodity Exchange was trading Wednesday at Y1,054/gram at 0615 GMT. Spot gold at 0615 GMT was at $272.10/oz. The man the Economist magazine once described as "rich and rude" admits that he is in the minority, as gold's 21-year bear run has scared away most backers.

"But I see the Dow falling sharply, the dollar plummeting to Y80 and bond prices crashing. Eventually, the only safe alternatives will be gold and shares in gold mining companies," said Matsufuji. "That is why I founded Jipangu. It's a kind of 'insurance' company." Jipangu was set up in 1995.

Preparing for the Coming Golden Age Matsufuji was evasive when pressed for specifics to back up his predictions, and prefers to fall back on historical models.

"When U.S. stocks crashed in 1929, prices of gold and shares in gold mining companies soared, and the same thing is about to happen again," he said. Matsufuji is so convinced of the coming gold boom that he has been putting his money where his prognostication is - and in a very big way.

Through Jipangu, he has been snapping up major stakes in mining companies around the globe. He already has a 24% stake in High River Gold Mines Ltd., a 22% stake in Cambior Inc. and a 24% stake in Claimstaker Resources Ltd. (now J-Pacific Gold Inc.), all three based in Canada, and he also has the option to buy a significant stake in South African mining giant Harmony Gold Co. Ltd.

Altogether Matsufuji has his hand in some 40 projects around the world. Based on his own estimates, some 20 million ounces of gold, or 622 tons, are now under his control. That is more than twice of Australia's 2000 output of 295.7 tons of gold. Australia is the world's third biggest gold producer.

Japanese Investors Seen As Key "I want to give Japanese investors the opportunity to invest in gold and gold mining companies around the world without exposure to currency risks," said Matsufuji, who sees Japanese investors as a key element in the new golden age.

"Japan is the world's largest creditor nation. Individual assets total more than 1,300 trillion yen. If just 1% of this money could be moved into gold, that would instantly account for five years worth of global production, and gold prices would skyrocket," Matsufuji said.

"Japan has the potential to really move the market," said Matsufuji, who hopes Jipangu will serve as the vehicle for pumping more Japanese money into the gold market.

Matsufuji explained that the word 'Jipangu' was first bought to the West by Marco Polo as a term describing Japan as an "island of gold". "That is why I named my company Jipangu. I want Japan to again be full of gold."


goldenpeace (1/23/02; 14:25:52MT - usagold.com msg#: 68714)
Apex Silver (SIL)
Another anomaly seems to be happening....each afternoon for the last two weeks, starting at 3;30PM, someone buys 10-15000 SIL at the market and doesn't care what they pay...they just "clean up the Street", even though silver , on Comex of course, has fallen 45c in that same period of time....someone wants Apex pretty bad.

sourdough (1/23/02; 14:15:02MT - usagold.com msg#: 68713)
Singapore press reporting japan buying


January 24, 2002
TOKYO
Japanese investors turning to gold ahead of deposit insurance cap

Move also prompted by low rates, falling stocks, banks' bad-loan problems


JAPANESE investors are pulling some funds from banks to buy gold as a way to protect their investments prior to the introduction of caps on guarantees of time deposits at banks that fail, gold traders said.

In April, the government will limit the guarantee to 10 million yen (S$137,500) per depositor if banks fail, which, combined with the yen's 8.3 per cent fall against the dollar since Dec 1, is prompting some investors to look for alternative investments, traders said.


'We have customers coming in with rolls of notes still in wrappers stamped with bank logos,' said Osamu Ikeda, a spokesman at Tanaka Kikinzoku Kogyo KK, Japan's largest gold retailer. Gold sales at Tanaka doubled in November and December and may rise five-fold this month because of concern about Japan's weak financial institutions, he said.

A drop in deposits at some lenders indicates money used to buy gold may be coming from banks. Deposits at members of the Second Association of Regional Banks fell 1.5 per cent from a year earlier in the final three months of last year amid growing worries over the health of Japan's banks, which are laden with more than 150 trillion yen in bad loans, and may need public funds to survive the nation's third recession in a decade.

Japan's 36 major credit associations saw deposits drop 2.8 per cent to 2.82 trillion yen in six months ended Sept 30 from the fiscal year ended March 31.

People may be changing savings into gold because 'most depositors don't understand their money will be guaranteed as long as it's in demand deposits even after April 1,' said Toru Komatsu, an independent fund manager who advises individual investors at Komatsu Portfolio Advisors Co. 'Some TV shows have been exaggerating worries about the cap on deposit insurance.'

Japan's plan for phasing in limits on deposit insurance will not apply to demand deposits until April 1, 2003.

Trading in gold futures on the Tokyo Commodities Exchange has increased because of concern about the economy, traders said. One million gold contracts were traded in December, a 37 per cent year-on-year rise, the exchange said.

'Given record-low interest rates, falling stocks and banks' bad-loan problems, people see gold as a stable investment,' said Katsushige Yamazaki, spokesman for Tokyo-based commodities brokerage Ace Koeiki Co. - Bloomberg




TownCrier (01/23/02; 14:08:20MT - usagold.com msg#: 68712)
Here's a clean copy of the Japanese story
http://business-times.asia1.com.sg/storyprintfriendly/0,2277,34040,00.html?
Business Times (Singapore) - 24 Jan 2002

------JAPANESE investors are pulling some funds from banks to buy gold as a way to protect their investments prior to the introduction of caps on guarantees of time deposits at banks that fail, gold traders said.

In April, the government will limit the guarantee to 10 million yen (S$137,500) per depositor if banks fail, which, combined with the yen's 8.3 per cent fall against the dollar since Dec 1, is prompting some investors to look for alternative investments, traders said.--------

While the limit on deposit insurance for *time* deposits begins in April of this year, the full impact may not arrive until April of next year when the limitations on deposit insurance are futher applied to *demand* deposits, too.

Money is a nice and transient thing, like a hot potato. Eat it now or keep it moving. Physical gold is best suited for savings, and liquidation as needed to support/maintain your lifestyle.

R.

R Powell (1/23/02; 13:53:28MT - usagold.com msg#: 68711)
Town Crier
I just saw that you're here now and immediately thought of the book I've just finished. You may be familiar with it already but, if not, it's "When Money Dies, The Nightmare of the Weimar Collapse" by Adam Fergusson, William Kimber+Co. Limited, 1975.
Though sometimes tedious with the changing political scene, the currency story is fascinating. I believe many here would enjoy its reading but, judging from the attention you focus on the money supply, none more than yourself.
Rich

Centennial Precious Metals, Inc. / USAGOLD (1/23/02; 13:44:17MT - usagold.com msg#: 68710)
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Black Blade (1/23/02; 08:59:29MT - usagold.com msg#: 68693)
Top 10 Gold-Producing Countries, Ranked by 2001 Output
http://quote.bloomberg.com/fgcgi.cgi?mnu=news&ptitle=Mining%20News&tp=ad_mine&T=au_storypage99.ht&s=APE24axI_VG9wIDEw

Just a link to the Gold production rankings by country. Just for a education purposes. Cheers!

- Black Blade


Black Blade (1/23/02; 08:38:44MT - usagold.com msg#: 68692)
High P/E ratios bring warnings
http://www.accessatlanta.com/ajc/epaper/editions/tuesday/business_c3d4a0f794b9f113003f.html
Some worry stock prices overvalued

Snippit:

"Stock valuations now seem extreme," Merrill Lynch chief strategist Richard Bernstein said recently. He recommended that investors cut their stock holdings to 50 percent of their portfolios from 60 percent. "The P/E ratio of the S&P 500 is the highest in history, but most investors seem to pooh-pooh that fact by suggesting that the definition of earnings is wrong," said Bernstein.

Black Blade: No doubt about it! I have addressed this issue several times in the past. Most companies are not even growing fast enough to justify such high PE's (PEG ratio). Definitely a good time to get Gold and Silver portfolio insurance while still cheap.


Black Blade (1/23/02; 08:30:53MT - usagold.com msg#: 68691)
'Pro forma' results are bound to confuse
http://www.boston.com/dailyglobe2/023/business/_Pro_forma_results_are_bound_to_confuse+.shtml

Snippit:

Fourth-quarter and year-end earnings reports are just coming out, and the surprise in these announcements won't be in which firms say they make money, but rather in which stocks have the balance sheets to prove it. Many companies give their numbers a little ''pro forma'' shine before releasing them to the public. At its most benign, pro forma accounting is merely confusing. At its most extreme, the numbers presented can range from misleading to fraudulent.

''Pro forma'' means a lot of things. The best dictionary definition that applies to financial reports is ''provided ... to provide form or describe items.'' The Securities and Exchange Commission describes ''pro forma'' as being any financial statement not prepared ''in conformity to generally accepted accounting principles.'' If you ask me, pro forma must be Latin for ''baloney.''

Black Blade: No! Really? The author pulls no punches. Good read.

BTW, I see that the US Markets are breaking down under the weight of miserable earnings reports. Maybe they need to spice them up with a little "Pro Forma".

Black Blade (1/23/02; 08:22:27MT - usagold.com msg#: 68690)
RE: Waverider - msg. #68685 - Indonesia
Thanks, it may be just an angered Indonesian government or banking official making waves or possibly speculation on the part of the media. I only heard that Indonesia would default on IMF loans on CNN International only once, so who knows where that came from. However, it does not look good for Indonesia after being pillaged by the Suharto regime and the Asian Contagion crisis. Indeed - the report just may be premature. Cheers!

- Black Blade

Christian (1/23/02; 07:08:08MT - usagold.com msg#: 68689)
(No Subject)
Subject matter on my last post should be Leasing of Fleecing. Somehow I put it on the wrong line..... Another matter. I need a place to store my money, the few dollars I have left. Presently it is in a money market checking account paying 2.7%. I need a better return yet have access to it when needed and I want no rist what-so-ever. At this point return of the money is more impoetant then return on the money.... Please help!!!!!!!

Christian (1/23/02; 06:59:39MT - usagold.com msg#: 68688)
(No Subject)
Leasing or Fleecing
Silver or gold loans are always rolled over thus creating new loans, there is a cumulative effort to these loans. They just keep growing, however only the lease (interest) must be paid in metal form. The difference between metal loans and other types of loans is the return part. The collateral of a metal loan, the metal itself is sold back to the original owner who can do the same thing again with the very same metal. Fractional reserve banking at its best. Just like printing $1,000 at a cost of $2.50. Our public owned verifiable inventory is gone but the non-verifiable private inventory remains intact. The USA is being invaded and we don't even know who the enemy is. BOE practices the same fractional reserve system with its gold, just like with its fiat paper. Popular delusions pepper human affairs both past and present. Nowhere is such folly so sprinkled as in the matter of money and the nature and consequence of credit..............Our Fed is a sovereign power structure, based on the Canon Law Trust and Joint Stock Trust, seperate from the so called elected (purchased) government. Assets of debtors are hypothecated (pledged) as security without taking possession. Our elected (purchased) representatives have assigned the private property of their economic slaves (we the people) as collateral against an unpayable federal debt which cost them $2.50 per $1000 to create. Have mercy on our souls.

Centennial Precious Metals, Inc. / USAGOLD (1/23/02; 04:42:10MT - usagold.com msg#: 68687)
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