Home Gold Primer Q&A Daily Market Report Gold IRA Gold Coin Prices Charts Stats Essays Site Overview High Net Worth How to Buy Gold Live Gold Price Breaking Gold News Mobile Gold Price Gold Coin Images About Us-Contact Search Video Round Tables

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.

FORUM ARCHIVES

Select date of the archive you wish to view Month 1 2 3 4 5 6 7 8 9 10 11 12 Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Archives date back to September 22, 1998

WELCOME TO THE ARCHIVES!

ARCHIVED DISCUSSION FROM 6/4/2002
All times are U.S. Mountain Time

(Yesterday's Discussion.)

Black Blade (6/4/02; 22:51:21MT - usagold.com msg#: 77518)
Declining dollar set to boost gold
http://www.mips1.net/MGGold.nsf/Current/4225685F0043D1B242256BCE004A4812?OpenDocument

Snippit:

JOHANNESBURG - Increasing doubts about the dollar's ability to buck its recent downward trend has sent a number of economists back to the drawing board. Just last week brokers Societe Generale softened its bearish outlook on gold due in the main to its outlook for the US dollar.

But if JP Morgan's highly regarded technical strategy team's latest hypothesis is anything to go by, the Bank Of Japan could be shelling out plenty more in the years ahead if it is to retain a policy of keeping the yen under wraps.


Black Blade: It would appear that the US dollar is likely to slide further in spite of intervention. Foreign investors are leaving US markets. Consider that it was the $1.2 billion/day inflows in US bond markets from foreign investors that padded the books. Now those funds are going back home (except what the currency "interventionists" are spending).



mikal (6/4/02; 22:44:02MT - usagold.com msg#: 77517)
Correction
Foreign Exchange Markets, not "Forex".

mikal (6/4/02; 22:22:40MT - usagold.com msg#: 77516)
Dollar falls against Yen
http://www.reuters.com/news_article.jhtml?type=businessnews&StoryID=104...
Dollar Gives Up Early Gain
June 04, 2002 11:26 PM ET   By Yoshiko Mori
TOKYO (Reuters) - The dollar gave up its early, modest gains against the yen by late morning on Wednesday as profit-taking interest outweighed support from Japan's weaker-than-expected corporate survey results, traders said.
Many traders said the most influential factor for the market now is the trend in global capital flows rather than economic indicators.
"The market's focus is now clearly on the trend in the U.S. asset market, and in that environment economic indicators from Japan and elsewhere have to take a back seat," said Minori Takeuchi, vice president at Chase Manhattan Bank.
........During early U.S. trading hours, Japanese monetary authorities confirmed they had intervened in the foreign exchange market, for the fourth day in two weeks. That sent the dollar up around one yen to 124.34 yen in New York.
Senior Japanese Finance Ministry official Zembei Mizoguchi said on Wednesday that he would keep watch over foreign exchange, adding authorities were always prepared to act if needed.
But traders remain unconvinced that Japan would be able to effect lasting change in the yen's value against the dollar, since foreign money has been flowing into Japanese assets.
........The European single currency rose to a fresh 16-month high of $0.9453 in New York on Tuesday, staging a recovery of over 10 percent from this year's low around $0.8563 in early February. ($1=124.19 Yen)
@Black Blade- Volatility increasing in the Forex markets?

Black Blade (6/4/02; 22:20:37MT - usagold.com msg#: 77515)
The Battling Kaplans

Snippit:

(From Leonard Kaplan of Prospector Asset Management) - This afternoon gold and silver have sold off sharply in after-hours trading, with gold, at one point, down about $4, in rather illiquid conditions. I had calls from rather emotional clients, who were naturally quite concerned about their long positions in the market. From what I can gather, a major newsletter advisor advised his clientele to sell their gold today, and the electronic newsletters arrived late in the day. Perhaps I am wrong, but I see the large drop in prices in both gold and silver, late in the day, as an aberration. Separating emotion from intellect, nothing has substantively changed in the market. The USD was still lower on the day, the stock market was still lower on the day, and I still believe that the gold and silver markets are headed higher.


Black Blade: He may be referring to SJ Kaplan who reportedly has given a sell recommendation (again and again). Nevertheless, I am "VERY STRONGLY BULLISH" on Gold.


Black Blade (6/4/02; 22:10:15MT - usagold.com msg#: 77514)
Yen Falls vs Dollar, Euro as Bank of Japan Sells Its Currency
http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&middle=ad_frame2_topfin&s=APPzeXRUZWWVuIEZh

Snippit:

New York, June 4 (Bloomberg) -- The yen fell against the dollar as Japan sold its currency for the fourth day in two weeks to stem a rally that threatens export growth and a nascent recovery in the world's second-biggest economy.

Black Blade: A race to devalue between the Yen and the US dollar?



goldenboy (6/4/02; 21:37:20MT - usagold.com msg#: 77513)
@YGM re:Debt Crisis & Real Estate; Rees-Mogg etc.
Ultimately I believe real estate will go down; but only after possibly doubling again; I would not be surprised at a 10 banger. My parents saw their home go up 30 fold from 1961. If interest rates on a real basis are negative, people put their money into things. The banks and guv will welcome more liquidity, more tax revenue, more loans. Bond holders will lose.
I like Davidson and Rees-Mogg; read two of their books with great interest and subscribed to their newsletter for years. Their timing in the early 90`s was totally off however. Very bad investment record.
I think we are too quick to assume everything will go down the tube immediately. I still have my dried food from the 80`s. This thing will not happen overnight. (complete ruin) There may be a roll-over type event but I think a lot of water will go under the bridge before ruination.

Black Blade (6/4/02; 21:27:50MT - usagold.com msg#: 77512)
Who Gains From The Dollars Pain?
http://money.cnn.com/2002/06/03/markets/dollar_winners/index.htm

Snippit:

"From a manufacturer's point of view, the dollar was 25 to 30 percent overvalued," said Frank Vargo, international vice president at the National Association of Manufacturers. "It's cost us a lot in exports, which have fallen $140 billion [on an annual basis], largely as result of the dollar."

U.S. manufacturers, who fell into a deep recession after businesses abruptly stopped spending money last year, have cried long and loud for policy makers to intervene and bring the dollar down. They haven't had much luck getting the U.S. Treasury Department to act against the dollar, but other forces may now be doing the job, which will tend to push their sales and earnings higher.

Manufacturers and some analysts have said a weaker dollar will spur greater production, hiring and business spending, which Federal Reserve Chairman Alan Greenspan has called crucial to the broader U.S. economic recovery.


Black Blade: The US Dollar should fall much further if the US economy is to even begin to recover. Then other nations would also like to weaken their currencies so their economies can recover – take note of Japan's numerous currency interventions.



Black Blade (6/4/02; 21:21:00MT - usagold.com msg#: 77511)
IBM Fires 1,500 U.S. Chip Workers, Realigns Division
http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&middle=ad_frame2_topfin&s=APPzgAxPESUJNIEZp

Snippit:

Armonk, New York, June 4 (Bloomberg) -- International Business Machines Corp. fired 1,500 U.S. workers in its unprofitable Microelectronics unit and will realign the division to help climb out of a sales slump, a spokesman said.

Black Blade: These "Bones" are just "chips" of the old block, now headed for the growing "Bone Pile".



Black Blade (6/4/02; 21:11:54MT - usagold.com msg#: 77510)
The weakest link
http://cbs.marketwatch.com/news/story.asp?guid=%7B725FD2A5%2D2216%2D46DE%2D8EEA%2D4AEE34752D38%7D&siteid=mktw

Commentary: Weak job growth threatens recovery

Snippit:

NEW YORK (CBS.MW) -- A dearth of new jobs and, consequently, a large number of people out of work, are threatening the nascent economic recovery. While the unemployment rate and payroll numbers do tend to lag behind the rest of the economy, they are droopier than usual, this time around. The number of people receiving unemployment benefits now stands at a 19-year high.


Black Blade: The economic recovery is far from certain – so larger growth in the "Bone Pile" is likely.



Black Blade (6/4/02; 21:05:55MT - usagold.com msg#: 77509)
Market Wrap Up (Puplava – The Other One)
http://www.financialsense.com/Market/wrapup.htm

Snippit:

It Looks Like WAR! to Me

It's been my task to create the graph-of-the-day. When I searched today's news, I picked Kitco's 24-hour gold graph. Why? Because it blatantly shows the battle for gold. Notice the second graph which shows gold's price in Hong Kong, London, and New York. What happened after the close? Well, I'm not an expert, but I can tell you that after living with Jim and being educated with building our Precious Metals page, that someone, somewhere, has declared war on gold. The scuttlebutt in the chat rooms is that commercial banks with heavy derivatives and highly-hedged companies are in real trouble with the rising price of gold. Of course, I typed The Perfect Financial Storm and Storm Watch Updates. I know what Jim thinks! First: gold and silver have been in a twenty-year bear market, second: in times of uncertainty, people seek a safe haven, and third: rogue traders are betting on the wrong side. It's my educated guess that pros and peons alike think today's economy is a bit unstable.

Black Blade: Jim Puplava's wife pounds the keyboard tonight. A couple of "interesting" gold graphs at the top of the page. Maybe it is war.



Cavan Man (6/4/02; 20:59:59MT - usagold.com msg#: 77508)
Aristotle
Now, that's, "Takin Care of Business"! I understand Mssr. Bachman's house has a gift shop in the foyer. Think I'll let it "Ride, Ride Ride...."

Black Blade (6/4/02; 20:48:07MT - usagold.com msg#: 77507)
Nuclear rivals exchange insults
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2002/06/05/wkash05.xml&sSheet=/portal/2002/06/05/ixport.html

Snippit:

The war of words between India and Pakistan took a dramatic and highly personal turn yesterday as the first encounter in months between their leaders degenerated into an angry slanging match.

An Asian summit in the city of Almaty in Kazakhstan provided an ideal opportunity for President Pervaiz Musharraf of Pakistan and Atal Behair Vajpayee, India's prime minister, to talk peace. They used it instead to trade insults.

Hopes that President Putin of Russia might mediate and avert the threat of nuclear conflict faded as it became clear that Gen Musharraf and Mr Vajpayee were more interested in hurling abuse at one another.


Black Blade: How anyone deduced a rumor of a truce is beyond me. Sounds like a prelude to war – maybe nuclear war.



GoldnSilver2002 (6/4/02; 20:47:28MT - usagold.com msg#: 77506)
Central bank double cross?
Something just occurred to me as i watched the blatant after market,(thus no support),dip in p.o.g. Sometimes i have assumed that all the big banks were in on this,but wait a minute!What about greed ,what if a smaller bank was buying up this gold,or suddenly decided to become number one they could buy gold and sit,using it against any fiat debt/liabilities.Thus when the crash hit and their bigger brother banks are falling hard,they will not only rise,they will be the only ones standing,literally holding a huge portion of the worlds wealth and trust?

Frankly at this point they have become desperate and every time they drive down,more is bought.Why?Because people know a bargain,and soon they will recognize the value.I believe at some point a major player(Bank) will come along and knock this one past 354,knowing full well,they will be tipping the scales on the cabal.There's a renegade in every crowd,as soon as one breaks the ranks,the rest will fall in the wake.Oh well,there is more of us than them!


Conclusion:This thing is wound so tight a fly could set it off.Its not when will gold go up,its more like how much more bad news is coming??!!!?

Black Blade (6/4/02; 20:32:52MT - usagold.com msg#: 77505)
NYMEX Trading Rules – Gold
http://www.nymex.com/markets/cont_all.cfm?CID=15&cont_name=specs
Below are some of the NYMEX Rules for Gold (for now):

NYMEX Trading – Gold

Trading Hours

Futures and Options: Open outcry trading is conducted from 8:20 A.M. until 1:30 P.M.

After-hours futures trading is conducted via the NYMEX ACCESS® internet-based trading platform beginning at 3:15 P.M. on Mondays through Thursdays and concluding at 8:00 A.M. the following day. On Sundays, the session begins at 7:00 P.M. All times are New York time.

Maximum Daily Price Fluctuation

Futures: Initial price limit, based upon the preceding day's settlement price is $75 per ounce. Two minutes after either of the two most active months trades at the limit, trades in all months of futures and options will cease for a 15-minute period. Trading will also cease if either of the two active months is bid at the upper limit or offered at the lower limit for two minutes without trading.

Trading will not cease if the limit is reached during the final 20 minutes of a day's trading. If the limit is reached during the final half hour of trading, trading will resume no later than 10 minutes before the normal closing time.

When trading resumes after a cessation of trading, the price limits will be expanded by increments of 100%.

Options: No price limits.

Last Trading Day

Futures: Trading terminates at the close of business on the third to last business day of the maturing delivery month.

Options: Expiration occurs on the second Friday of the month prior to the delivery month of the underlying futures contract. Beginning with the expiration of the December 2002 contract, options will expire on the fourth business day prior to the end of the month preceding the options contract month. If the expiration day falls on a Friday or immediately prior to an Exchange holiday, expiration will occur on the previous business day.



Aristotle (6/4/02; 20:27:23MT - usagold.com msg#: 77504)
C-Man "What would Ben Graham do?"
Well, if I missed your humor in the first go-round, I can surely find it here.

Saddly, I don't imagine ol' Ben is buying any Gold these days, but on the up side, he sure ain't sellin' any, either!

I, on the other hand, would ask myself, "Self, WWLGD?" (what would Lou Gramm do?)

Probably he'd look at the Gold market, then the international -- "Foreigner" -- scene, and then sing his band's 1981 classic, "Urgent."

Gold. Get you some as Lou would do. --- Aristotle

Black Blade (6/4/02; 20:22:35MT - usagold.com msg#: 77503)
Crisis looms as demand booms for natural gas
http://www.usatoday.com/money/bcovfri.htm

Snippit:

While public worry tends to focus on supplies of crude oil and pump prices at gasoline stations, the real gas problem could be brewing in natural gas. Experts say falling U.S. production and the difficulties involved in getting new supplies from North America or abroad could make for a severe supply crunch at worst or highly volatile prices at best for the next several years.

Worries for consumers

The best evidence for this is what happened during the winter of 2000-01, when short supplies drove prices up from their long-term average of about $2.25 per Mcf to more than $10 per Mcf at one point in January 2001. Driven by those extraordinary prices, drilling surged: According to oil-field supply company Baker Hughes, the number of rigs drilling for gas nearly tripled from a low of 362 in April 1999 to a peak of 1,068 in July 2001. "The entire industry knew: I drill gas wells, I get rich," says Mark Papa, chairman of EOG Resources, a large independent gas producer. "A huge effort was put in place to drill gas wells." But despite that effort, gas production barely budged. From 18.8 trillion cubic feet (Tcf) in 1999, domestic gas production crept up to 19.4 Tcf in 2001 — a 3% increase.

"What in the world explains why you had to double gas well completions just to stay flat?" asks Matthew Simmons, chairman of energy investment bank Simmons & Co. "I think we're in very scary shape." Analysts are alarmed by the fact that gas wells peter out much more quickly now than they used to, thanks to technology that lets producers drain reservoirs more quickly and the fact that reservoirs tend to be smaller.

Even Federal Reserve Chairman Alan Greenspan fretted about this phenomenon in a November 2001 speech, noting that new wells now give up 50% of their recoverable reserves in the first year of operation vs. 25% in the 1980s. As the economy recovers, Greenspan said, burgeoning gas demand "will be putting significant pressure on the reserve base."

Supply crunch coming

Add a recovering economy, the chance of a hot summer or a cold winter, and the fact that strapped electrical utilities have turned to gas-fired plants to add enormous generating capacity that will compete for gas supplies, and pessimists see a serious gas crunch coming. Papa says forecasts show U.S. gas production falling 4% this year and demand whittling down the record amounts of gas in underground storage by the beginning of the heating season Nov. 1. That could lead to a supply crunch in both the USA and Canada by next year, he says.

Simmons says the crunch could show up even sooner. "You have this unbelievable mountain of new power plants that assumed there would be plentiful natural gas," he says. But when prices fell back from $10 per Mcf in January 2001 to $2-$3 per Mcf last summer, drilling collapsed. "We're going to pay a painful price for that by the third or fourth quarter."


Black Blade: This is a very good article and it presents the possible coming supply crunch just as I have described here for quite some time. Natural gas is the real sleeper in the energy equation and is easily overlooked as everyone's attention is focused on oil and gas prices. I still believe that we could be setting ourselves up for a supply crunch late this year or early next year. Natural gas storage is larger but that is due to more storage available (it also includes "working" and "cushion" gas). Roughly only about half the new excess NG in storage is immediately useable. There are also several more new NG-fired power generating facilities in the US. Virtually every new power plant is natural gas fired due to its desired clean-burning/environmentally friendly qualities. Unfortunately we have nothing to fall back on when supply does not keep up with demand. We could easily write off any long awaited economic recovery as without energy we are dead in the water. Energy is the lifeblood of any economy – without it the economy dies.


Cavan Man (6/4/02; 20:01:19MT - usagold.com msg#: 77502)
Aristotle
Thanks for the lesson. We're in complete agreement. I was trying (in vain) to be a little funny. Comex like the NYSE (IMHO) is a freak show. I always ask myself; self: WWBGD (what would ben graham do?)

sector (6/4/02; 19:57:09MT - usagold.com msg#: 77501)
Superpower [Read USA] Retreat: Bowing to N-blackmail [From Pakistan]
http://timesofindia.indiatimes.com/Articleshow.asp?art_id=11999893
[...The message is loud and clear to other potential rogue states that if they could clandestinely acquire nuclear weapons, then the US and the rest of the international community would keep off. It would confirm the potent role of nuclear weapons in international relations.

The western leaders praised General Musharraf for more than four months for his speech of January 12, 2002 and his commitment to stop cross-border terrorism. Then, on May 31, 2002 they spoke about the possibility of an Indo-Pak war consequent upon the continuing cross-border terrorism. In other words, the sole superpower and its allies were not able to prevail upon Pakistan to abide by its commitment and invoke Security Council resolution 1373 (which mandates states not to support terrorism).

Further, Bin Laden, Mullah Omar and the leadership cadres of the Al-Qaida and the Taliban are today in Pakistan and regrouping their forces. In spite of Pakistan being an ally of the US, the terrorists were able to move from Afghanistan to Pakistan in November-December 2001 before the Indo-Pak border stand-off began and while the Pakistani army fully manned the Afghan border.

Out of 22 leaders of the Al-Qaida, only two are accounted for. Most of the high profile operations of the elite US and British forces on Afghan-Pakistan border have been futile.
The US vice-president and the director of FBI have asserted that new terrorist threats are inevitable and cannot be stopped. Yet, they seem oblivious of the fact that today the epicentre of terrorism is Pakistan, from where the Al-Qaida is busy plotting new attacks on the US.

The Al-Qaida used to proclaim that they had defeated one superpower (the Soviet Union) and they would surely defeat the second (the US). The US's current indulgent behaviour towards Pakistan would appear to validate their claims.
...]
+++++++++++++++++++++++++++++++++++
A slap in the face from India to the US strategy in Afganistan/Pakistan.

It makes valid points regarding the failure to identify and neutralize Pakistan terror targets because they constitue...well...most of Pakistan.

The only strategy that makes sense is the one that has India as our secret hit man against Pakistan. They move in from the East, we move to block the baddest guys from the West. Only time will tell on this one.

All those troups...just sitting around...playing cards...eating food...getting bored. Is there to be a war?

Check with Mahendra.


Black Blade (6/4/02; 19:50:59MT - usagold.com msg#: 77500)
Re: Aristotle, Jimbo, Jack, Pizz, etc.

Aristotle – Thanks, I had forgot all about "Access" trading - silly me. I guess that the institutional trading may be the principal reason for running the markets in after the regular Comex trading hours. I notice that the POG has rebounded some as well. I have always been suspicious of thinly traded markets as they are not usually open to the general public during regular hours and can be used to artificially set market sentiment prior to or after trading on major exchanges. I should have remembered about Access trading though. Again thanks and keep up the good work.

Jimbo, Jack, and Pizz – I always wondered why someone like SJ Kaplan would place his bets on COTs and ignore the big picture of the world around him. I notice that he does not relate his prognostications to possible rising interest rates, threat of war, US dollar weakness, etc. However, he has been "Bearish", "Significantly bearish", "Strongly Bearish", and "Very Strongly Bearish" (maybe even "Double Extreme Bearish" for all I know) during the majority of this multi-month Gold rally. One must look at every possible variable and come to judgment of how market "might" react under current and possible near term conditions. I remember when he also called for people to short ebay and Amazon.com in the midst of the dot.com bubble. Anyone who had followed that advice would have been in the poor house in no time. Sure they were overvalued stocks trading in a speculative bubble, however, no one has consistently been able to time the markets. Cheers!

- Black Blade


Pizz (6/4/02; 19:47:47MT - usagold.com msg#: 77499)
Gandalf the White
My apology to either or both of the Kaplan's for the confusion, BUT IMHO, one is off base with the newsletter, and the other is probably still underwater on his calls (smile).

Ahh, the board meeting(s). . . .rumor had it that the CFO (me) was just about ready to walk (wonder where that started???). My CEO, a notorious yeller and screamer, was a bit on the passive side, especially when I justifiably let loose with a little of my Scotch-Irish, German, and Sicilian temperment.

The bottom line to them was that they had to either start making money or quit spending what we don't have on acquisitions and expansions, cut marketing expenses rather dramatically, and properly capitalize the companies we do have. If we don't, our finance company will be sitting in my offices opening the mail.

I think I got their attention since I reminded them of their personal guarantees, but so far the only action has been for me to slide our payables out to 90 days rather than 25. I don't think I'm the only CFO doing the same thing.

Our vendors are starting to scream already.

Cash is real tough to come by right now - everywhere.

Hope to post a bit more, now that I'm taking a DGAS attitude, been some good stuff on the board the last week.

Pizz



Aristotle (6/4/02; 19:41:04MT - usagold.com msg#: 77498)
Sir Cavan Man "COMEX...They do have a FEW tons to sell."
Contrary to popular perception, COMEX actually doesn't have an ounce to sell.

And what of all that Registered and Eligible "inventory" present on the books of the licensed depositories -- Scotia Mocatta, HSBC, and Brinks? Not an ounce of it belongs to the Exchange.

It is entirely possible at any given time that some of the Eligible ounces people might see listed at Scotia, Honkers & Shankers or at Brinks is actually my own property, completely unavailable to COMEX participants.

How is this possible? If I happen to have kilo bars in temporary safe storage at those institutions, say, in the process of conversion/exchange for the extra safety (and a potential premium play) on European oldies, then they are listed among the "Eligible" inventory of those institutions. This doesn't signify that the Exchange owns it, but rather that it meets the specs for delivery in satisfaction of a standard Contract and is "Eligible" (as opposed to "Registered") in the sense that I haven't had it officially parceled and registered into standard delivery "warrants."

When my favorite Gold broker ("Hi, guy!") tells me that my Swiss Gold francs and German Gold marks have arrived on his end of the deal, orders are given by each of us for an exchange of our forms of gold.

Now pay attention here. If his account is with an institution outside of the COMEX triumvirate, then the level of their Eligible inventory will fall as Brinks hauls my kilo bars away, replacing them with a form of Gold that is off the radar screen -- coins do not match the standard spec for delivery against a contract, and thus are not listed among Eligible inventory.

Eventually, this Gold coin leaves NY as I bring it closer to home, but prior to that, and at all points whether in the form of kilo bars or coins, it remained my property and was never the Exchange's to sell. The Exchange merely matches (anonymously) a paper long against a paper short, and should it come down to delivery issues in those rare cases, all eyes look to the short to deliver the Gold through a warrant, the exchange of which is done through the auspices of the Exchange and its licensed "depositories." (Again, these are depositories of other people's Gold.)

But this rarely happens because true commercial interests don't move their Gold through the Exchange, showing up merely to hedge cashflow. And the big speculators? They're in it for cash. And the little speculators? They exhaust their resources on the margins, and can't afford to stand for delivery for the full bodied contracts they theoretically represent. (There's an exception, but that shall remains the topic of another post.)

So as you can see, in a crisis of confidence in paper and counterparties, it is more likely to see a SELLOFF of America's form of Gold Benchmark (that is, the COMEX Gold Contract) rather than a price runup. Then, out of discredit the market's attention will shift to the phsical Gold market where the price (premium??) will break free from the dying paper proxy.

Gold. Get you some. --- Aristotle

Cavan Man (6/4/02; 19:33:37MT - usagold.com msg#: 77497)
PPOG (Paper Price of Gold)
PPOG is really jumping around eh?

Cavan Man (6/4/02; 19:32:30MT - usagold.com msg#: 77496)
Poor Japan.....
.....without exports they're doomed.
Japan's 1st-Quarter Capital Spending Falls 5.2% (Update2)
By Yoshiko Matsushita


Tokyo, June 5 (Bloomberg) -- Japanese companies spent less on factories and equipment in the first quarter, suggesting that a recovery from the third recession in a decade isn't assured.

Capital spending by companies, excluding banks, insurers and other financial firms, fell 5.2 percent from the fourth quarter, seasonally adjusted, the Ministry of Finance said. From a year earlier, it fell 16.8 percent following the fourth quarter's 14.5 percent decline.

The world's second-largest economy probably grew 1.5 percent in the first quarter after shrinking for three quarters as exports and consumer spending rose, according to a Bloomberg survey. Still, business spending could put the brakes on a rebound.



Cavan Man (6/4/02; 19:30:33MT - usagold.com msg#: 77495)
Coming to your town soon......
Reserve Bank of Australia Increases Key Rate to 4.75% (Update3)
By Victoria Batchelor


Sydney, June 5 (Bloomberg) -- The Reserve Bank of Australia raised its benchmark interest rate for the second time in a month, boosting it a quarter percentage point to cool a housing boom and consumer spending that may fuel inflation.

Governor Ian Macfarlane and his board raised the overnight cash target rate to 4.75 percent. All 21 economists surveyed by Bloomberg News expected the rise, and the median forecast is for the rate to climb to 5.25 percent by year's end.

It comes just hours before a government report is expected to show gross domestic product expanded 4.6 percent in the first quarter from a year ago. That would be the fastest annual growth in almost three years. The inflation rate is 2.9 percent, near the bank's 3 percent ceiling, and Macfarlane said it may accelerate next year.



Pizz (6/4/02; 19:19:40MT - usagold.com msg#: 77494)
Think the Banks aren't sweating it out???
Did a house refi/debt consolidation last month to reduce bills and tap my equity while it's still available at low rates.

Took the bank 7 working days to close - must have been a record. Rather than pay my listed obligations directly (like they used to), they just dumped the cash into my checking account and told me I could pay my creditors at my leisure.

Today I tried to wire money out to my brokerage account, which was a repeat wire that they had on file, and 1/2 hour before wire cut off time, they called and said their wire department could not confirm the recipient account and wanted me to confirm it, but they could not promise the wire would be sent today. The bank branch is one block from my office, and after a very strongly worded chat with the Manager (in person), guess what? There was no account problem and my wire was sent.

Also, in our business, we take large personal checks for purchases. At times, when we have less than credit worthy customers, we take the checks to the customers banks and have cashiers checks made out to the company while the funds are still there, rather than take chance on depositing the check and having something else clear before our check. In the last two months, nearly every bank in the NW will not do this any more - UNLESS WE OPEN A BUSINESS ACCOUNT SO THEY CAN TRANSFER THE FUNDS INTO OUR ACCOUNT AT THEIR BANK.

Cash must be at a premium, because the banks sure don't seem to want to part with it easily.

Money, get you some, and the shinier the better.

Pizz





Gandalf the White (6/4/02; 19:14:54MT - usagold.com msg#: 77493)
Sir Pizz --- Re: the other Kaplan !
--- I do believe that there is an age difference between the one at Kitco and the one that periodically writes this webpage. It just goes to show that someone is not always correct like you and I.
<;-)
PS: what happened at the BOARD meeting ?

Pizz (6/4/02; 18:56:07MT - usagold.com msg#: 77492)
This Kaplan Guy
If memory serves me correctly, he posts next door @Kitco off and on and was flaunting a bunch of gold calls that he wrote a month or two back (late fall 2002 expiration). Said he just couldn't pass up the premium and was selling as many as people would buy and ridiculing the buyers.

He's so far underwater right now, and thinks he has a following, that he'll probably write anything to try to get out of these positions.

Pizz

JackFlash (6/4/02; 18:27:33MT - usagold.com msg#: 77491)
Regarding Gold mining outlook...
I wonder if this guy (Kaplan) will issue an "extra special extremely bearish outlook" in his next newsletter. I've been tracking his predictions since last summer and he seems to be increasing the tenor of his bearish (wrong) calls on gold with each update. Comparing this move in gold to the nasdaq bubble is absurd. I think he may either have a hidden agenda or has a problem admitting that he has been wrong.

Carl H (6/4/02; 18:20:52MT - usagold.com msg#: 77490)
Off hours trading
I suspect the comment below about this being an act of desparation to TRY to set market direction is correct. I am sure the Japanese Housewives will use it as an opportunity to by more...


Aristotle (6/4/02; 18:09:26MT - usagold.com msg#: 77489)
Horatio, "RotG" is common phrase dating back to the dutiful adherence to international settlements pre-WWI
It can be argued that the widespread stability of monetary structures at that time were due to a single-minded focus on playing by those "Rules."

However, that was doomed to fade in time as democratic populations found greater footing in the power of the vote -- pressing governments to sacrifice the rigid rules (i.e., fixed international currency exchange rate) in favor of domestic favors (i.e., exchange flexibility for beggar-thy-neighbor attempts at fuller employment through export advantages.)

All of that notwithstanding, in your post to me are you, in fact, telling me that September 26, 1999 was an idle hoax? That 15 Central Banks came together and produced a meaningless document -- a kind of perversion from too much time on their hands?

I'm listening, but I'm havin' a hard time buyin' what you're sellin!

I do, however, agree largely with one of your earlier conclusions to the *approximate* effect that in the end the Central Banks will have "their" Gold and the Bullion Banks will move on to other activities.

Freeeeeee Goooooooold! Have you anything to add to this, Sir Belgian?

Gold. Get you some. --- Aristotle

Cavan Man (6/4/02; 18:06:27MT - usagold.com msg#: 77488)
COMEX
When are those guys going to start working a full day? They do have a FEW tons to sell.

Jimbo (6/4/02; 18:02:07MT - usagold.com msg#: 77487)
Gold Mining Outlook?

What's wrong with this picture? An off-beat newsletter, "Gold Mining Outlook," today advised readers to sell their gold now. Has anyone ever heard of the newsletter's editor, Steven Jon Kaplan, or tracked his advice to determine whether he knows what he's talking about? Here's what Kaplan had to say:

"SUMMARY: SELL YOUR GOLD MINING SHARES!!! My current outlook for gold and gold mining shares has deteriorated to VERY STRONGLY BEARISH, the first time that such a stance has been justified since I began this online newsletter. Many junior gold mining shares are now trading at the same levels that they were in the mid-1990s, when the gold price itself was above $400 per ounce, and many of these companies are still losing money. Those which are actually making a profit are selling at P/E ratios typical of the Nasdaq in its heyday. Speculative juniors have been far outperforming their senior counterparts in recent weeks, as is typical of any market near the top of a bubble. Just because the gold share bubble is not quite as exaggerated as the Nasdaq was in March 2000 doesn't mean that it isn't a bubble all the same. Brokerages are generally very positive toward gold mining shares, continually raising their price targets, and even those who are supposedly bearish on gold are using phrases such as "fully valued at current levels," fearful of looking foolish by actually predicting a price drop, which is again typical of any bubble, when bears are afraid to be bears. Besides myself, there is not a single gold analyst—not one--willing to state definitively on the record that the price of gold is going below $300 per ounce, even though such a decline would be a mere 10% move, whereas many analysts are speaking publicly of $350, $400, and higher. Speculative call buying on gold mining shares, traders’ commitments on gold and on currencies which correlate with the gold price, insider selling by gold mining executives, insider issuance of new shares (Newmont, Harmony, Goldcorp, Agnico-Eagle, Echo Bay), and investor bullishness (now 86% on gold itself according to Market Vane, 100% on gold funds according to Investors’ Intelligence) are at even higher levels than at the February 1996 peak, and are surpassed only by the January 1980 super-euphoria. The kind of bubble which happened in 1979 can only occur in the late stages of a gold bull market; it is very likely that the HUI index of gold mining shares will be at current or even lower levels eight or nine years from now, before such a final bubble is ready to occur. Commercials are likely net short more than 90 thousand contracts of COMEX gold. Physical demand for gold has dropped more than 20% in many areas, including South Asian imports and professional jewelry orders, which are critical to sustaining a gold price above $300."

Horatio (6/4/02; 17:41:25MT - usagold.com msg#: 77486)
Aristotle Rules ?
Since when do greedy people follow the rules?When did that start? I suggest Italian and Swiss gold may be lent to them,are they covered by U.S. Rules? If that won't work how about starting a War in India forcing them to disgorge thier gold in order to pay for a War.They forced Argentina out of thier gold..Nothing is beyond the realm of possibility when they need to repay gold they don't have.War ,Revolution or simply taking advantage of those in debt to squeeze them out of gold or money to get gold with.Hence my suggestion to get out of debt,don't margin your gold stocks or option trade them.Thats thier vehicle to getting your gold and shaking it loose from you.Don't play thier game they are masters at it.

Horatio (06/04/02; 17:26:00MT - usagold.com msg#: 77485)
Get out of Debt, pay cash and Buy the Dips
You had better have a strong stomach if you are going to stay in the gold markets !The Central banks are making additional loans to the Bullion banks ,gold that they can use to gyrate the markets with as they try to trade thier way out!
Youe emotions will will be on a Rollar Coaster for the next year.In my opinion ,if you are on margin or options trading,thay are going to take you to the cleaners.Thats where they will get thier gold back from.The Bullion banks are really traders and they need volitilty to skim thier markets.
I believe the Central banks are making additional GOLD loans to them so they can trade thier way out.They now have the ability to gyrate these markets.At the end of all this the Central banks will have thier gold back and the Bullion banks will be gone.In the mean time pay cash ,get out of debt,buy the dips and go fishing,get away from the gyrations that are sure to happin.

Aristotle (06/04/02; 17:15:33MT - usagold.com msg#: 77484)
Horatio, it won't be so easy at that for the bullion banks
You suggested, "Over the next year they will try to get as much gold from the market place as possible using ADDITIONAL gold loans from the Central banks."

Item 4 of the Central Bank Agreement on Gold (Washington Agreement) effectively shuts off this avenue. They boldly wrote and posted the new Rules of the Game. How else does an institution insulate itself from what would otherwise be unimaginable political pressure?

Stepping toward Free Gold.

Gold. Get you some. --- Aristotle

Aristotle (06/04/02; 17:07:19MT - usagold.com msg#: 77483)
A helping hand for Sir Black Blade (msg#: 77463)
I read with interest your 5:04pm Eastern Time message entitled "Off Market Intervention Hits Gold!" You said, "there is no market open right now, so this appears to be institutional intervention."

I don't want to find myself in a position of second-guessing you, but you might want to tuck this away in your box of tools for future use.

The New York Mercantile Exchange offers after-hours trading of their standard COMEX Gold futures contracts through their ACCESS program. It opens for trade at 3:15pm Eastern Time and runs through the night until 20 minutes before standard COMEX trade begins again each morning.

So as you might now imagine, at the time of your post the situation you've described could as likely be explained as the effects of private paper longs having had nearly two hours to show how small their hands really are.

Or... maybe these parties are simply (and wisely) stepping out from under the shadow of the piano? <wink>

Gold. Get you some. --- Aristotle

Boilermaker (06/04/02; 17:04:17MT - usagold.com msg#: 77482)
Don't mess with the tax man
http://biz.yahoo.com/rb/020604/crime_kozlowski_12.html
Reuters Business Report
Ex-Tyco CEO Indicted on Sales Tax Evasion

By Philip Klein and Jeanne King

NEW YORK (Reuters) - L. Dennis Kozlowski, who lived large as he raked in nearly a half billion dollars as chief of Tyco International Ltd., on Tuesday was charged with dodging $1 million in sales taxes on paintings by such

A day after his stunning resignation as head of embattled conglomerate Tyco (NYSE:TYC - News), Kozlowski was arraigned in a New York criminal court and accused of scheming to avoid paying sales tax on more than $13 million in artwork he bought over the last nine months.

Manhattan District Attorney Robert Morgenthau charges that Kozlowski, 55, conspired with unnamed art dealers and Tyco employees to dodge an 8.25 percent sales tax by making it look as though paintings that he purchased in New York were shipped to Tyco offices in Exeter, New Hampshire.

The indictment says he accomplished this in some cases by instructing Tyco employees to sign bogus invoices that would show the receipt of the paintings in New Hampshire.

"For somebody who was highly paid, to fail to pay over $1 million in sales taxes is a serious crime," Morgenthau said. "Over the years, there has been too much winking at this kind of activity, and we don't intend to wink."

In mid-December, the indictment charges Kozlowski went so far as to have five empty cardboard boxes shipped to Tyco offices in the place of the paintings, which included work by impressionist master Claude Monet, valued at $8.8 million.


Comment;
Investors will be reassured that evil CEO's are being purged. Everyone can now go back in the water, no more sharks. Al Capone move over, we have a new mafia. I'm expecting to see a St. Valentines type massacre on Wall Street coming soon.

Horatio (06/04/02; 16:47:38MT - usagold.com msg#: 77481)
Bullion Banks
IMHO The Bullion banks have told the Central Banks "You need to lend me more gold,or you may never get back what I owe you!
The Bullion banks are going to try to trade thier way to getting back the Gold they owe.Central banks will lend them more gold for this activity.I believe that at the end of one year the Central banks will have thier gold back,the Bullion banks will be out of business having taking the country and Central Banks to the brink of disaster.Over the next year they will try to get as much gold from the market place as possible using ADDITIONAL gold loans from the Central banks to gyrate the market prices in order to trade thier way out.Trading is what Bullion banks do ,therefore they must trade thier way out.
As a gold bug "buy the dips ",theres going to be plenty of them.

Belgian (06/04/02; 16:03:05MT - usagold.com msg#: 77480)
A plausable explanation.....???
Berlusconi, Italian media-tycoon and Euroland dissonant, at the dollar's (and his private) service !? A Welteke stunt to help the dollar interventionists ? Another episode in the Gold drama of short or longer duration ?

This type of repetitive Gold maneuvering will only result in renewed and stronger/broader, attention/commitment, to Gold's cause ! Not per sé a negative in the somewhat longer run (rocksolid fundamentals). Mineprofits into the Physical ad repetitum !!!

Black Blade (06/04/02; 15:51:33MT - usagold.com msg#: 77479)
Oil Inventory Builds

The API reports that Oil inventories increased by 6.3 billion bbl. Oil prices are down 48 cents. Not likely to impact Gold much, so there must be another reason here.

- Black Blade

Black Blade (06/04/02; 15:46:55MT - usagold.com msg#: 77478)
Re: Cavan Man

New Zealand? That would be interesting. A major player (or several) heading them off at the pass so to speak? Maybe to hit Gold in a thinly traded exchange in order to set market direction. A psychological ploy? Who knows. A lot to think about here.

Gotta go.

- Black Blade

goldquest (06/04/02; 15:44:33MT - usagold.com msg#: 77477)
My Best Guess
http://www.maps.com/explore/timeclock/
is that Midway Island "Gold exchange," decided to sell a couple of Gold Eagles.

Black Blade (06/04/02; 15:42:56MT - usagold.com msg#: 77476)
Push On After Hours POG

It has been suggested that the line of resistence to where the gold shorts "go under for the third time" was at about $330.00/oz. Perhaps this is the actual "line in the sand" that must be vigorously defended at all costs or some big major players suffer horrific losses. Just speculation of course, but it does fit some observations.

- Black Blade

Anyway, off to the gym. Maybe some news will come to light by the time I return.

Cavan Man (06/04/02; 15:42:24MT - usagold.com msg#: 77475)
@ Black Blade
Close. It is New Zealand I believe.

Jimbo (06/04/02; 15:40:53MT - usagold.com msg#: 77474)
Greenspan's comments

Apparently, Fed. Chairman Greenspan's comments today helped the markets gain slightly before closing. In my opinion, this is the same man who was partly (largely?) responsible for our economy's great decline starting in early 2000 when he repeatedly increased interest rates to "beat inflation" (which didn't exist at the time). Does anyone else get angry when they read this master of double-speak's remarks?:

"I suspect the American economy is in an upswing; it's not going to be a dramatic upswing, it can't" Greenspan said Tuesday, adding that the economy isn't likely to match the first-quarter's 5.6 percent annual growth rate.



mikal (06/04/02; 15:35:28MT - usagold.com msg#: 77473)
@Cavan Man
"Where's the gold?" That's true, the gold will not be sold on the open market. Most or all Central Bank "sales" appear to be swaps between themselves. A prearranged buyer may get a paper certificate of receipt and a digital entry or gold that has no market impact.

YGM (06/04/02; 15:33:40MT - usagold.com msg#: 77472)
Desperation ad Nauseum!!!
Myself I'm Just Smilin!
They been hammering all nite and all day..Imagine the paper dumped to drive spot from a high of $330.00 to $323.00 with all the positives in the market (meaning buyers galore)...
These clowns have been given absolution from on high to do whatever it takes to get the price back to managable levels you can be sure!! The paper Gold market is just one big hilarious joke!! Only thing is it won't be so funny for many when one of the big market manipulators bites the bullet cause the house of 'Paper' is going to take others with it. Shareholders, other Bullion Banks and Wall St are all in the Domino line up...I'll bet the Physical market will be made to appear short of Yellow til the price hikes again, now that every Gold Dealer knows the game is rigged and demand is there!! Another 'Buying opportunity' for us poor folk :>}

Black Blade (06/04/02; 15:33:13MT - usagold.com msg#: 77471)
After Hours Gold Trades

The remaining question is "what exchange does Gold trade on afetr NY closes and before Sydney Opens?" Somoa maybe?

- Black Blade

Cavan Man (06/04/02; 15:29:14MT - usagold.com msg#: 77470)
POG
So, you thought it would be easy? Stay long and stay tuned. It is going to be worse/better than '79 depending upon your position. Take care...CM

mikal (06/04/02; 15:24:06MT - usagold.com msg#: 77469)
Re: Gold price and Italian "rumor"
Another gold site, known for its forum food fights, is showing spot market is open, as they do daily at this time. We are seeing the volatility many of us have expected. Naturally some intervention, some profit taking, some fleeing on the Italian rumor. Two points: 1) Of course Italy will sell, as part of the Washington Agreement they have already agreed to limited sales. The Swiss just did it more quietly. 2)Any intervention in NY after hours activity has recently been countered by buying support, in most cases. Intervention may try to counter tomorrow's upward pressure- expected to increase with the return of London trading after the long weekend, & short covering, momentum traders, newly encouraged longs, producer hedge buybacks, and other funds.

Cavan Man (06/04/02; 15:22:57MT - usagold.com msg#: 77468)
POG
Lads: Expect volatility at this stage of the game which is almost UP for the other side of the fence.

Belgian (06/04/02; 15:19:11MT - usagold.com msg#: 77467)
Floating ....yen...dollar....euro ?
What exactly does "currency-intervention" means ? When Japan sells yen for dollar...what is the yen buyer (US-?) going to do with those declining yen ? What if others sell those dollars for euro and counter the japanese dollar-rise with an euro induced/forced, dollar-decline ? Howhowwwww !
Is there a good soul out there to educate me on the mechanism(s) of currency-intervention(s) ? TIA.

What good is it to intervene, when the different dollar-exchanges have already turned around into a declining *trend* for the dollar ? How can (concerted-US/Japan) intervention stop and reverse a fresh declining trend after 7 years of dollar-rise ? The more that the third euro-player wants to have his saying in this (€/$ parity to encourage € expansion) ?

Does Euroland (or the world's non dollar block) still needs an artificial high dollar-exchange rate, with the US-economy, significantly in structural contraction (cfr. falsifications) ?

Yes, they can make the dollar-decline have a temporary pauze, without trend change. Good for what or who ?
Once the financial brotherhood smelled the blood, you can't stop them storming for currency-trade profits.

IMO, intervention can only work (change things) when all parties clap with both hands and agree in mutual interest.
Than the financial hyenas have to back off or risk burning their fingers, sorry, confetti.
A rising dollar makes it impossible for the pound to join EMU on the right sterling/euro exchange rate. Conflict !?

Is the US still happy with a strong dollar and therefore a continued increasing trade-deficit ? A strong dollar "WAS" OK when the dollar-block was increasingly trading (expanding) with the rest of us. GNP growth figures seem to suggest otherwise and low interest rates plus strong dollar do cultivate the enormous debt-burden into a giant heavyweight, never, never, ever to be redeemed (not even the rent of it) ! A real catch 22 situation, what explains what is ment by the dollar suffocating under its own weight.

A probable modest retreat for POG is yet another excellent buying opportunity for the yellow. Or are Dr. No and Hung Fat (Sinclair/Shultz) having enough force to pay for the luxury of having another opinion and push POG higher in the rise and exposure of its Real Value ?

Thoughts on the outcome of this currency-play-intervention, wellcomed enthousiastically. TIA.



Cavan Man (06/04/02; 15:19:02MT - usagold.com msg#: 77466)
POG
I REALLY doubt the Italian CB would be selling gold. What is being sold after hours is PAPER. Where's the gold?

goldquest (06/04/02; 15:14:13MT - usagold.com msg#: 77465)
Their Dying Gasps
If this is the best they can do, then they are doomed!

The Victorian (06/04/02; 15:10:02MT - usagold.com msg#: 77464)
rumor or fact - italian CB selling gold ???
I read on another BB that the Italian Central Bank had made a statement about selling gold reserves. I am not sure if someone was saying that scenario MIGHT be the reason, or a similar event was probable in order to push down POG, or whether this is fact. If anyone finds out, please post. I just bought more HGMCY today and am now in a foul mood!!!

Black Blade (06/04/02; 15:04:43MT - usagold.com msg#: 77463)
Off Market Intervention Hits Gold!
http://www.kitco.com/charts/livegold.html

Though no trading market is open right now, it appears that there is big time intervention in the PM markets in an effort to push Gold lower. Currently Gold is lower by $4.10 an ounce. Remember there is no market open right now, so this appears to be institutional intervention. We shall have to see what develops.

- Black Blade

Black Blade (06/04/02; 15:00:36MT - usagold.com msg#: 77462)
Corning To Cut 1,500 Jobs This Week

Just over the wire is that 1,500 Corning employees will be found on the growing "Bone Pile" by the end of this week. The so-called economic recovery is not doing much for US workers. As always, get out of debt, stash enough cash for several months expenses, get Gold and Silver portfolio insurance, and start a storage program with nonperishable food and basic necessities. Prepare for the worst and hope for the best.

- Black Blade

Black Blade (06/04/02; 14:54:22MT - usagold.com msg#: 77461)
Capitulation Phase May Be Near - Investor Confidence Eroding
http://www.comstockfunds.com/index.cfm?act=Newsletter.cfm&CFID=1246964&CFTOKEN=61437830&category=Comstock%20Daily%20Comment&newsletterid=736&menugroup=Home&aol=1

Snippit:

Last Wednesday we wrote a comment called "Market Top Looks Ominous", and today the market came crumbling down as the S&P 500 came all the way back to a level that it reached only eight trading days after the September bottom. Investor confidence, already shaken by the accounting scandals, was further shattered by the resignation of Tyco's CEO because of possible income tax evasion, the suicide of El Paso's Treasurer and the accusation that Williams companies tried to manipulate California's energy prices during last year's crisis. This came on a day when some analysts issued somewhat negative opinions on the software and chip stocks and Xylinx failed to make the optimistic statements that the Street expected. To make matters worse the front page of the Wall Street Journal featured an article outlining the negative effects of further weakening of the dollar.

Black Blade: The markets clawed their way back from deep negative territory (perhaps with a little help from their friends?). Someone apparently intervened in the currency markets in a big way today and there was a rumor that a truce between Pakistan-India. This rumor was later denied, however, it had already worked its way into the currency trades and the PM markets causing a strengthening in the USD and a pullback in Gold prices. Alan Greenspan gave a somewhat upbeat report on the US economy with some reservations. Nothing in the data suggests an economic recovery. Tomorrow is another day as London markets are back online and reality may set back in.



Black Blade (06/04/02; 14:45:20MT - usagold.com msg#: 77460)
Lawmaker wants detail from JP Morgan on Enron loans
http://biz.yahoo.com/rc/020603/enron_morgan_1.html

Snippit:

WASHINGTON, June 3 (Reuters) - A Democratic lawmaker on Monday pressed for more details from J.P. Morgan Chase & Co. (NYSE:JPM) about its role in transactions that may have allowed a subsidiary of Enron Corp. (OTC:ENRNQ.PK) to borrow $1 billion without the loans appearing on company balance sheets.

California Rep. Henry Waxman said he was not satisfied with the investment bank's explanation in a recent letter that the way the loan transactions were reported was up to Enron, not J.P. Morgan. J.P. Morgan's May 8 letter to Waxman said allegations "that the firm assisted Enron in disguising loans are baseless." Waxman wrote back to J.P. Morgan on Monday to say the investment bank had not answered his original questions sent to the firm in April about the transactions. "Your letter failed to address the most striking aspect of the loans ... namely, the fact that they allowed Enron to appear to repay its monthly obligations without any money seemingly changing hands," Waxman wrote.

He demanded a more detailed explanation from the investment bank by June 12. He released both his letter and J.P. Morgan's May 8 letter to the media.


Black Blade: JP Morgan Chase is in the hot seat. We could see some "interesting" developments as the congressional committee focuses in on the derivatives trades and off-shore shell companies.



Black Blade (06/04/02; 14:39:35MT - usagold.com msg#: 77459)
Hewlett-Packard Co. In Trouble – Cuts 15,000 Jobs
http://biz.yahoo.com/rc/020604/tech_hewlett_4.html

Snippit:

BOSTON, June 4 (Reuters) - Hewlett-Packard Co. on Monday said it would cut jobs faster and slice costs deeper to wring more savings from its merger with Compaq Computer, and warned that the slump in technology spending was dragging on and would cut into sales in the current quarter. Chief Executive Carly Fiorina, meeting financial analysts for the first time since winning an eight-month battle to carry out the $18.7 billion merger, said the computer and printer maker would cut 15,000 jobs by November 2003, a year ahead of schedule.

Black Blade: The company announced no recovery this year and 15,000 employess are to go off to the growing "Bone Pile", even after AG stated that job cut announcements are slowing. Hmmm…



TownCrier (06/04/02; 13:58:53MT - usagold.com msg#: 77458)
Euro building base, comes at dollar's expense
HEADLINE: ECB's Duisenberg sees continued strength in demand

June 4 (Reuters) - European Central Bank President Wim Duisenberg on Tuesday said...

"Looking ahead, available forecasts all paint a picture of a continued but slow strengthening in both domestic and foreign demand."

TownCrier (06/04/02; 13:52:15MT - usagold.com msg#: 77457)
Bloomberg on investor movement into gold
New York, June 4 (Bloomberg) -- Gold rose to a 4 1/2-year high, extending this year's rally to 18 percent, as investors sought an alternative to stocks and bonds.

Investors are buying gold in search of better returns and protection from a disruption to financial markets should India and Pakistan go to war. The Standard & Poor's 500 stock index has dropped 9 percent this year, while the 2-year Treasury note has returned 1.6 percent, including reinvested interest.

``Gold is an alternative if you're not happy with the stock market, and bond yields are fairly low,'' said Jay Mueller, who helps invest $45 billion in assets at Strong Capital Management in Milwaukee.

``The tension of conflict, such as in the Middle East and South Asia, also pushed investors to buy gold,'' said Koichiro Kamei, managing director of Market Strategy Institute Inc., a metals research company. ``The tension may damage economies and increase investment risk.''
----------

Bottom line: Do you think that gold investing has reached Main Street U.S.A. yet? I think we have yet to see even the TIP of the iceberg, still just a ghostly shape through the mist.

R.

Gandalf the White (06/04/02; 13:16:41MT - usagold.com msg#: 77456)
Just returned from a NIGHT controlling the ORCS and what do I see --
THANKS for all the discussion from the NEW POSTERS !!
YGM (06/04/02; 11:22:16MT - usagold.com msg#: 77446)
--snip--- & "All"....
==
It's so great to have some new additions/minds throwing their thoughts and wide array of knowledge into the mix of the forum....Each day seems to get better since MK's last contest!!!!!
===
YES INDEED !! and now with Dr. BB on the USAGOLD Staff things can only get better and better. BUT remember, as I state in my educational classes, "There is no such thing as a DUMB QUESTION !" (Only DUMB ANSWERS from the unknowing "teachers" !)
==
Looks to me as if ANOTHER picture is coming into focus !
<;-)



TownCrier (06/04/02; 13:06:47MT - usagold.com msg#: 77455)
Explore
http://www.usagold.com/sitemap.html
A convenient index for your use. (You can access this URL at any time by clicking the blue sky USAGOLD logo at the top of the forum).

Jimbo (06/04/02; 13:03:03MT - usagold.com msg#: 77454)
Gold at $400
CBSMarketWatch's Mike Maynard wrote an interesting piece today that suggested gold will move up to $400 within 12-18 months. Hope this story hasn't already been posted? Here's an exerpt:

On to $400?

But conditions in the currency market may be even more important a determinant for gold, according to market analyst Paul van Eeden of Global Resource Investments Ltd. in Carlsbad, Calif.

On Tuesday, the Bank of Japan intervened for the fourth time in three weeks in the currency market, a move designed to blunt recent gains made by the Japanese yen against the dollar.

While the dollar gained against the yen after the central bank's intervention, the euro gained more ground against the greenback. A weaker dollar makes gold more affordable for foreign buyers.

Van Eeden said the dollar's safe-haven status has been undermined, noting that on a percentage basis gold's gains since the end of January have clearly outpaced the retreat in the dollar. This suggests that "gold is becoming attractive once again as a store of wealth," he said.

Van Eeden believes gold could change hands at $400 an ounce within 18 to 36 months.

Also on Nymex, July silver rose 4.5 cents to $5.125 an ounce, July platinum gained $5.60 to $553 an ounce, June palladium rose $1.55 to $354.30 an ounce, July aluminum tacked on 0.45 cent to 66.3 cents a pound and July copper advanced 1.05 cents to 78.6 cents a pound.


USAGOLD / Centennial Precious Metals, Inc. (06/04/02; 12:58:15MT - usagold.com msg#: 77453)
Don't be fooled by inflatable paper substitutes
http://www.usagold.com/ProductsPage.html

Gold Today!

In this global marketplace, a single event on the far side of the world can suddenly and adversely affect the performance-credibility value of the commercial positions within your investment portfolio.

Gold has no employees, no overhead, and no financial statement to balance. It cannot go bankrupt. Gold is wealth itself. It is valued worldwide on the basis of its uniquely reliable form and function -- a steadfast financial commodity which is immune to the contagious collapses to which all financial paper is prone.

Permission to reprint is hereby granted where the USAGOLD name is cited along with our web address, mailing address and phone number. For electronic reproductions, citing the post heading and the http://www.usagold.com/cpmforum/ website address as the source is sufficient.

Thursday February 9
website support: sitemaster@usagold.com
Site Map - Privacy- Disclaimer
The USAGOLD logo and stylized gold coin pile are trademarks of Michael J. Kosares.
© 1997-2012 Michael J. Kosares / USAGOLD All Rights Reserved