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ARCHIVED DISCUSSION FROM 5/8/2001 All times are U.S. Mountain Time (Yesterday's Discussion.) Black Blade (5/8/01; 23:39:43MT - usagold.com msg#: 53265) Golden Truth Why thank you very much. I just try to bring the "Big Picture" into a littler better focus. I am posting a bit earlier than usual as I must contend with an increased workload supplying NG to hungry plagues of locusts (Grasshoppers). We are fast approaching the end game as the energy crisis is the key to the economy and try as they might at the BLS with phoney baloney statistical filters, there is real inflation. Every postwar recession has been preceded by an energy crisis. This one is shaping up as one that dwarfs all those of the past. It encompasses all energy for one reason or another, and not just oil and gasoline as in time past. Portfolio insurance (gold) is more critical than ever, and the big players are quietly accumulating. They aren't doing this because they just like the color and feel. To them the color of money is green, So ask yourself, why are they doing this? When you (and everyone else) know - then - Check Mate! Game over. Golden Dreams!Black Blade Golden Truth (5/8/01; 23:02:52MT - usagold.com msg#: 53264) TO BLACKBLADE! You know the more I read your stuff the more addicted I become. Your Grasshopers eating all that energy stuff just SLAYS me, what a riot,,, I love your stuff, and it's real world and real time to boot! [You are] definitely not a "one horse two cow outfit"! Thanks for all [your] unselfish time, you put in here, it is not in VAIN!!! It is much appreciated, by thousands of other readers here at the Golden forum. Thanks again Black Blade, you are awesome!!!!!!!! Golden Truth..... Black Blade (5/8/01; 22:38:39MT - usagold.com msg#: 53263) Blackouts, Power Prices Cost California Productivity (Update1) 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=AOvfHNhaTQmxhY2tv Snippit:Summer electricity prices in the U.S. will be 5 percent higher than last year, the government said. A study last month from the Bay Area Economic Forum, a government- and business- backed research group, said the costs ripple through the economy.Black Blade: Sorry but I just had to post a link to this article. Blackouts are just an inconvenience? Better think again. Black Blade (5/8/01; 22:29:28MT - usagold.com msg#: 53262) SOME TIPS ON WHAT TO BUY FOR THE RECESSION by John Crudele http://www.nypostonline.com/business/30063.htm Snippit: There is the possibility that all these rate cuts will panic the inflation-wary bond market - already worried about rising energy costs - and cause borrowing costs to climb. That's already happening. But that anomaly shouldn't continue forever. If the economy remains weak, bond prices should rally. And if all these rate cuts do panic the bond market, gold's the place to be.Black Blade: Crudele nails it. Portfolio insurance. Black Blade (5/8/01; 22:20:48MT - usagold.com msg#: 53261) Energy costs feed the inflation monster http://www.nationalpost.com/financialpost/story.html?f=/stories/20010507/553893.html Consumers feel immediate pinch of higher oil and gas prices as effects begin to be seen in other sectors of economySnippit:If you've paid a heating bill, filled up your car with gas, bought a steak for your backyard barbeque or stocked up on cigarettes recently, you might feel you've just been fleeced. Join the crowd. While many economists keep telling us inflation is dead, the sharp runup in the price of energy last year is beginning to work through the economy, nudging up prices on everything from air travel to hotel roomes. At the same time, seasonal factors have conspired to push up the price of many consumer staples such as meat and vegetables.Black Blade: As stated here many times. Only Cheetah and the other jungle animals just don't get it. "Bungle in the Jungle." Black Blade (5/8/01; 22:09:46MT - usagold.com msg#: 53260) Gas Bills Are Rising Again http://dailynews.yahoo.com/h/wrtv/20010508/lo/395235_1.html Snippit:Natural gas companies say that the price of your gas bills will be going up.Black Blade: Prices will remain higher from now on as there is a natural gas supply crunch. There are not enough drill rigs, pipelines, and storage. Virtually all new power generation in NG-fired. From now on forward, NG will have to be stored in summer as use has increased logarithmically. NG storage is still far below last years levels and though this summer could be a squeaker, we must face the fact that this winter could be deadly. BTW, a Grasshopper friend of mine called earlier today. He said, "it's not easy being green when you can't charge your electric car." Yeah, he lives in California no less. We are most definitely living in "interesting times." Black Blade (5/8/01; 21:56:59MT - usagold.com msg#: 53259) Cheney Blunt with Blame for Energy Crisis http://dailynews.yahoo.com/h/kpix/20010508/lo/427_1.html Snippit:Vice President Dick Cheney (news) is placing the blame for California's energy crisis squarely on the shoulders of Californians. Calling it a simple case of neglect, Cheney says, "What's happened in California, I would argue, is they've taken the route of saying, 'well we can conserve our way out of the problem. All we have to do is conserve. we don't have to produce any more power.' So they haven't built any more electric plants in the last ten years in California and today they've got rolling blackouts, because they don't have enough electricity. They've got rising prices. They've got a whole complex of problems that are caused by relying only on conservation and not doing anything about the supply side of the equation."Black Blade: "…and they danced, played and .." Ah heck, you get the point. This energy crisis is going critical and it will take out the economy as we know. Gold is a form of portfolio insurance that has been tested throughout all known history, even the Thracians had gold and some of the worlds finest jewelry centuries before the Egyptians. A bit o’ the metal should be stored by all. Black Blade (05/08/01; 21:49:46MT - usagold.com msg#: 53258) Task Force To Propose Legislation http://dailynews.yahoo.com/h/ap/20010508/pl/bush_energy_plan_3.html Snippit:WASHINGTON (AP) - President Bush (news - web sites)'s energy task force plans to propose legislation allowing the seizure of private property to accelerate the construction of electrical power lines, three administration officials said Tuesday. The recommendation is contained in the final draft of a broad energy blueprint to be unveiled by President Bush next week, the officials said. The ``eminent domain'' authority allows the government to appropriate private property for public use; the property owners are usually compensated.Black Blade: George Dubya is proving to be quite the Eunuch isn't he. He has back-peddled on the Clinton executive orders of the "last days," by letting them take effect. He is proving to be something of a Scumbag. But then all politicians are scumbags by the very nature of the type of person who seeks to rule over the lives of others. Now a Stalinist twist of seizing private property. Smooth move! The last time this nation sold its soul for a little security was in the Great Depression when FDR took away a lot of freedom for a few crumbs from his table. It also resulted in the loss of the right to own gold as well. Now an energy crisis of epic proportions threatens that security once again. The more things change - the more they stay the same. Hmmm... Black Blade (05/08/01; 21:38:25MT - usagold.com msg#: 53257) Calif. Hit by Blackouts Again http://biz.yahoo.com/rb/010508/business_utilities_california_dc_33.html Snippit:LOS ANGELES (Reuters) - California suffered its second consecutive day of statewide blackouts on Tuesday as consumers turned up their power-hungry air conditioners amid scorching temperatures, ignoring pleas for conservation, while officials warned of more of the same on Wednesday.Black Blade: Yep. You just got to know that these shock-waves will ripple through the fabric of the US economy. It grows more intense each passing day. The cracks are showing as with the current wave of California energy crisis blackouts. Time to surf the shock-waves aboard a golden lifeboat while the Grasshoppers continue to ignore the obvious. "…and they danced, sang, and played all summer…" Black Blade (05/08/01; 21:30:56MT - usagold.com msg#: 53256) Gas Prices Jump to New High http://dailynews.yahoo.com/h/ap/20010508/us/gas_prices_5.html Snippit:CHICAGO (AP) - Summer vacations are just around the corner, and once again soaring gasoline prices are driving some motorists around the bend. U.S. pump prices have hit record highs, topping the $2-a-gallon mark again in Chicago and California and spurring talk of a possible $3 a gallon sometime after the peak driving season begins on Memorial Day.Black Blade: Supplies may not completely dry up as consumers will be forced to conserve as they continue to lose their jobs and are unable to afford the gas to drive their autos. It won't matter as businesses will be closed due to rolling blackouts and it becomes increasingly difficult to avoid the rolling riots as they risk repeating the gauntlet that was experienced by Reginald Denny the trucker who was beaten into a vegetable on national television by a herd of wild animals in South Central LA. Besides there won't be anywhere to go. Y2K? No, Y2001 in California today. Today there was yet another set of rolling blackouts in California. More expected tomorrow. megatron (05/08/01; 21:11:27MT - usagold.com msg#: 53255) Silver notes Talked to a guy at Engelhard today. Asked to purchase 10oz. bars and got a big hrmmph and a laugh. Was told in no uncertain terms there was none of those being made anymore and could only supply me with 100.oz units. Did not in any way sound like there was lots just laying around. Will call JohnsonMathey tommorow and post reply. Gold Trail Update (05/08/01; 20:54:49MDT - Msg ID:53254) The Gold Trail Discussion has been Updated The Gold Trail Discussion has been updated. Click on the link to read the latest updates. Tree in the Forest (05/08/01; 20:50:19MT - usagold.com msg#: 53253) Galearis It's great to be able to combine investing in PMs with a hobby. I think working-kirk said he collects PM instruments. I always wanted a silver flute. They do have the best sound.I was in Toronto many years ago and stayed at Inn on the Park. There's a great five star restaurant there. Maybe someday I will get back. I enjoyed my stay in Toronto! Silver's getting tight no doubt; it's day of reckoning is coming. Tree in the Forest (05/08/01; 20:36:01MT - usagold.com msg#: 53252) Randy Thank you for that excellent Hathaway link. Quite prescient actually, in view of the fact that he wrote it in August 1999 before the WA. Here's what he had to say about Ashanti:"The recent market value of Ashanti's hedge book was $290mm,using conservative assumptions. What is interesting is that this major corporate asset would be worth nothing if gold traded at $325. At $350, the company would begin to face margin calls. These numbers assume the company takes no action in a rising market.Management would of course defend the hedge book by buying calls with a higher strike price, close out profitable positions, and other assorted maneuvers. The company is quick to point out that their hedge book would not withstand a spike in the gold price very well. The value of the book could not be realized in a compressed time frame. If the gold price did rally sharply, it is assumed it would settle back after the spike to allow the company to realizethe hedge book profits. In theory, a run in the gold price could take place, but management sees nothing imminent. The Ashanti hedge book is a bet that the gold market will remain quiescent and trouble free. They are merely "renting" their gold in the ground to enhance realizations. Ashantis sanguine view is not unusual. Few in the industry are prepared for a spike in the gold price, especially one which does not retrace. We expect this to happen, not only because it would inconvenience so many, but because markets that are far out of balance change in a volcanic, not an evolutionary, manner." Galearis (05/08/01; 20:19:06MT - usagold.com msg#: 53251) @ Tree in the Forest silver scarcity Well, I had to go to Toronto today and am once more reminded of how wonderful it is not to live there (smile). The 401, which is a deadly place at the best of times is unspeakable when raining. Whewwww.Believe me, driving to Toronto and in it gets me down more than the spot market. (smile)Wonderful news! One can still get sterling spoons in collectible shops for $5CAN. I bought 4 teaspoons out side of the city today.(Big Chershire cat grin). But seriously, there is a great shortage of AFFORDABLE scrap and junk silver now. However, the availability of collectible sterling ware is fine - it just keeps rising in price - even though I have NEVER found a collectibles dealer in ware who follows the spot market. This is inflation driven IMO. However, according to dealers there is not very much coming out of private homes to these outlets (again the average person does not follow the spot market)which in turn implies that the public is either holding or they do not have much. Whatever the reason those collectibles dealers who want to buy are not seeing it offered.That says SHORTAGE.And it will likely stay that way until metal value goes through a fifteen fold increase to take it beyond retail buy cost. This will eventually bring out the sterling scrap, but that will take time.This summer when I am cruising through Cobalt I'll drop into the Agnico refinery located there. Perhaps I can get some statement from them as to their supplies. And this brings to mind a statement from a local I met there last summer who said that their main supply now (then) was reprocessing exposed film. But that could have been due to a contractual thingy.G. Randy (@ The Tower) (05/08/01; 20:07:49MT - usagold.com msg#: 53250) Canuck and the ECB I've noticed that this issue has been the source of considerable confusion in the past. I think the simple explanation is that people are not making the necessary distinction between the European Central Bank (ECB) and the EuroSYSTEM (the financial consolidation of the 12 euro-member national central banks along with the ECB).When nations commit to joining the currency union, they contribute share capital to the ECB in proportion to the relative size of the national economies within the currency union. This also determines the voting weight of the members in the Governing Council of the ECB. The 15% that is commonly referred to relates directly to this share capital which nations subscribe to the ECB. Simply put, 15% of the original capital provided must be in the form of gold.In other words, the capital of the ECB individually amounts to 767 tonnes. This is from the original 747 tonnes provided by the original 11 members (representing 15% of the approximately 50 billion euro reserve capital pledged to the ECB) plus the 20 tonnes provided this past January by Greece (representing 15% of the total share capital required of that nation).Barring any portfolio adjustments by the ECB, there is no certainty that the gold proportion of its reserve assets will stay at 15%. Without any change to the weight of gold sitting in the vault, the proportions may change from the orignal values based on quarterly mark-to-market revaluations of the gold and the foreign paper held. For example, if the paper falls in value, the gold proportion would rise above 15% without any addition to the quantity of metal held. Beginning last summer, the ECB announced that it would no longer retain as reserves the interest earnings on its proportion of foreign paper assets.And on that note, as we see from the weekly consolidated reports, the Eurosystem as a whole has actually been dishording its principle holdings of foreign paper assets at a rate of nearly 500 million euros per week. By contrast, under the terms of the Washington Agreement, these same Eurosystem nations are "dishoarding" gold at a meager average rate of 15 million euros per week over the 5 year term. (Specifically, 390 tonnes from the Dutch and Austrians).The 30% figure is simply the proportion we find when we look at the current CONSOLIDATED reserves of the 12-nation member Eurosystem. As the numbers above would lead you to believe, the proportion of reserves in the form of gold is growing.Hopefully, that largely answers your question, "Have the gold assets remained unchanged because they value the gold as same and/or quantity of gold has not changed?"But to cover all the bases, we know that there remains under the WA terms latitude for the signatories to continue a degree of pre-existing leasing operations. And as such, the consolidated financial statement reflects "Gold and Gold Receivables". So it is fair to say that the the quantity of clear title gold may indeed vary from week to week within the Eurosystem, though without being reflected as a change in value to the asset. And while lawful, I find the practice somewhat distasteful because a paper claim simply should not be held at a value on par with the quantity of metal for which it is a claim. There should be some degree of discounting due to the counterparty risk. But there you have it. USAGOLD (05/08/01; 20:06:45MT - usagold.com msg#: 53249) FYI 1. We have helped thousands of investors with their bullion and pre-1933 gold coin purchases. We can help you. We offer a wide variety of investor services, our pricing is competitive, and let's face it, how many other gold dealers go out of their way to provide this kind of web site and other support services. We would like very much to welcome you to our family of happy, satisfied gold investors. Centennial Precious Metals/USAGOLD -- your friend in the gold business.2. Information services: We would like to invite you to take advantage of our information services. Please call (see phone numbers below) or e-mail us for additional information beyond the initial information packets you receive in the mail. We offer:******* Our Gold Almanac ****** An interesting look at gold's role in the investment portfolio and the services we offer. ****** Back issues of News & Views ****** Our popular monthly foray into the issues, politics, economics and social commentary surrounding the yellow metal. Back issues are especially helpful to newcomers to CPM/USAGOLD who would like to dig a little deeper, or those who simply would like to learn more. We go out of our way to find third party opinion and analysis on gold that we think can be helpful to you in your quest for more knowledge on the subject.****** You Can Survive a Potential Gold Confiscation ***** This is the report that has caused such a stir among gold investors and advocates. We know of no other source that details better what happened in 1933 and what you can do to protect yourself. Our solution is both practical and affordable. The tour de force behind the monograph is George Cooper, LLD, who did extensive legal research and assembled a large body of research in one easily accessible location -- this report. Available by e-mail (pdf) or hard copy (there is a charge.)****** The ABCs of Gold Investing ***** The introduction to gold ownership for those looking for a quick, reliable education on the yellow metal. In its third printing. Sorry, but we have to charge for it, unless you are already a client.We invite you to call with your interest.3. Gold IRAs: This has become an extremely popular program.. Its not complicated. You're going to like the idea of having gold in your retirement plan. Ask for George Cooper, our IRA specialist. He knows the ropes.4. The Small Order Desk: If you want to purchase one to ten ounces, Marie Ballard is the one to ask for. She'll be glad to help you, and you get to talk to one of the nicest and knowledgeable brokers in the business. 5. International Orders: We work with investors throughout the European Union, Canada and Australia. It's as easy as buying in your hometown.You already know about this web site. Now this gives you an even better idea what we are all about.We would like to thank all of you who support this web site and our other services with your patronage. You make all this possible. Please Remember: It is your gold purchase from Centennial Precious Metals/USAGOLD that nourishes these pages.800-869-5115 (US) ***1-800-294-9462 (Can) ****0011-800-2761-2761 (Aus) **** 00-800-2760-2760(EU) TOLL FREE Randy (@ The Tower) (05/08/01; 19:11:15MT - usagold.com msg#: 53248) This past Gilded Opinion piece by John Hathaway is relevant to recent discussion http://www.usagold.com/HathawayPyramid.html Excerpt:"The gold derivatives pyramid is a vigorous free market creature. It cannot be put down with a simple declaration that the paper is no longer redeemable in gold, as governments did with currency. It is a short selling scheme that has become a trap from which few short sellers will escape. Paper claims in the form of derivatives far exceed the underlying physical metal on which they are based. The trust, which balances this new pyramid, is based on false assumptions and lack of information. Paper gold claims have proliferated at a pace rivaling any government printing press. A surfeit of paper gold has driven down the price of the physical on which it is based....Expect the resolution to be swift, furious, and uncomfortable for those caught short."(click link for more) Canuck (05/08/01; 19:05:02MT - usagold.com msg#: 53247) @ Randy From yours earlier:"A quick review of the Eurosystem's weekly consolidated financial statement for the week ended May 4th reveals that the vast stake in gold assets remains unchanged, valued on the books at 118.464 billion euros.In contrast, the net position in foreign currency assets has continued its general decline this week, evacuating another 600 million to leave a book value of 265.8 billion euros."Two quick questions if you have time.Have the gold assets remained unchanged because they value the gold as same and/or quantity of gold has not changed?Is the gold reserve now 31% of reserve? (118/118+265) I thought gold reserve was 15%?Canuck. JMB (05/08/01; 18:54:12MT - usagold.com msg#: 53246) click on: Pictures of a Stock Market Mania http://www.cross-currents.net This is a very good article, imo. Carl H (05/08/01; 15:50:16MT - usagold.com msg#: 53245) Netking: Re: Chinese Dishoarding of Silver See the GFMS Silver Survey 2000. They have a discussion of it. I have seen numbers in the 50-60MOz/year range somewhere, I think it was in the Silver Survey. Econoclast (05/08/01; 15:38:46MT - usagold.com msg#: 53244) So much knowledge and effort to digest! Trail Guide--Like an eager student I await your comments.Chrusos--Thanks for the link. It is a great and exciting read so far. The chart that shows the real price of gold in 1900 dollars is very interesting to me (I'm on pg 17 or so). Sends my mind in all kinds of directions. AEL (05/08/01; 15:32:45MT - usagold.com msg#: 53243) Netking Netking (5/8/01; 00:40:38MT - usagold.com msg#: 53221)"Some regional/national disparity in the POS for sure, something for the arb's to take advantage of yes, eg I picked up somemore bars over the last week at the converted USD rate of $3.97/Oz...now that will NOT last!"...........whew! where do you live? Chrusos (05/08/01; 14:54:38MT - usagold.com msg#: 53242) World Gold Council Derivatives Study http://www.gold.org/Gra/Other/GoldDeriv2full.pdf Boy have just finished reading the above by 3 eminent professors with a steering committee of more who are all experienced in the derivatives commodities market.A very clear and well-expressed overview using the best academic gift for making difficult things simple.Its more scary than anything I have read as they predicate everything on business between gentlemen in an absolutely secure and comfortable market managed by the world central banks and the largest commercial global banks. Everybody wins in well thought out derivative strategies that manage the endless liquidity of the gold market. What could be safer than that??The whole edifice is based on gold loans with duration of 3 months. There is very little reference to physical except the foolish benighted heathen who wear it around their necks as they, poor fellows, do not have access to stable currencies that will go on forever.This exposed the systemic risk to me better than anything I have read and also demystified in simple terms a lot that I had not fully understood - delta hedging etc. Confession - I used to dabble in few options now I believe FOA's description of total faliure of the paper market is the only outcome at even the slightest strainLet's go and join the financial engineers, er I mean gold miners, for a relaxed drink at the club ShalomChrusos Randy (@ The Tower) (05/08/01; 13:43:21MT - usagold.com msg#: 53241) Shaking with laughter http://biz.yahoo.com/rf/010508/n08594924.html HEADLINE: Munk comes to defense of Barrick's gold hedgingTORONTO, May 8 (Reuters) - Barrick Gold Corp.'s (Toronto:ABX.TO - news) chairman came to the defense of his company's controversial hedging program on Tuesday arguing it helps, not hurts, the price of gold. "Hedging, the way Barrick does it, not only does no harm to a gold price over any period of time, but it actually assists in the evolution of a healthy gold price," he told shareholders at the company's annual meeting.+Munk argues that in a period of depressed gold prices, unhedged companies are still forced to release gold into the market to make money, continually knocking down the price of gold.+"The fact that you never have to offer gold on the down tick, but only can move on the uptick, is a significant assistance to gold price evolution. Our hedging programs and the way we do it in fact assist the gold price evolution."--------------------He was later heard to say, "The forest, dammit, I can't see the forest! Would somebody please get these trees outta the way, they're blocking my view!"Keep selling that paper into the upticks, partner, 'cause my friends and I here in The Tower will keep taking the metal provided cheaply until, by default, this creature of your "gold price evolution" loses its legs. Netking (05/08/01; 13:29:10MT - usagold.com msg#: 53240) EP3 - Part XVIII China Won't Let US Plane Leave Island"Chinese officials said Tuesday they won't permit the United States to remove its surveillance plane from an airbase on Hainan Island, noting that Beijing had told Washington that several times in the past." - Mmmm, Eureka! now I know maybe too much Silver in the back for take off huh? <smile> Old Yeller (05/08/01; 13:26:53MT - usagold.com msg#: 53239) Words of wisdom from the Munkey http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config_ad&vg=BigAdVariableGenerator&date=20010508&archive=roc&slug=roc2001-05-08T191026Z_01_N08594924_RTRIDST_0_BUSINESS-MINERALS-BARRICK-COL Wow,talk about spin.This guy appears to have mastered the Clintonian hyperbolic decepto-speak. Netking (05/08/01; 12:58:22MT - usagold.com msg#: 53238) Carl H - Ag Carl H (53227)You write;"...Also keep in mind that China as been dishoarding large amounts of silver. A process that the silver shorts hope continues..."Carl, can you give us some proof of this, or any numbers to back this up. If it was happening where is it going & how are they getting it there if it was? regards Netking Buena Fe (05/08/01; 11:22:00MT - usagold.com msg#: 53237) Trail Guide & Freedom Hear Hear.... Mr. Speaker......Our esteemed colleague has plainly dissertained (?) (along with the help of his associates) the most basic/fundamental economic rights of all men under God (thats all of us by the way)......freedom to choose your savings/wealth/trade instruments! Now...Mr. Speaker will you please inform Mr.AG that his resistance is useless........and lets not have that pity-party either.......just get on with the inevitable....."FREEGOLD!"I'm a little PMS'd today (Pre-Momentum-Syndrome), if you haven't noticed. TheStranger (05/08/01; 11:11:31MT - usagold.com msg#: 53236) An Important Signpost on Reinflation Road? Opponents of the reinflation thesis have maintained that rising wages were not a threat to prices as long as they were offset by "new economy" productivity gains. Perhaps this morning's report, indicating the first decline in U.S. productivity in 6 years (-.1%), will finally silence that argument. Manager's, who have eagerly taken credit for productivity improvements, will now discover just how many of those gains were due to the labor-stretching influences of an overheated economy. Now, as employees run out of things to do, progress in this area will be much harder to come by. Meanwhile, wages are rising at a 5% clip. Add this to dramatically higher energy prices, and you wonder how much longer Wall Street can go on denying the obvious. One thing is for sure: There is a sudden sea-change approaching in how people perceive the threat of inflation, and, when that change occurs, the consequences to investors ought to be thunderous. Mr Gresham (05/08/01; 10:13:08MT - usagold.com msg#: 53235) "Gold is Dead" Spotting that phrase in the Adam Hamilton re-post; now all we need to see is the Time Magazine cover announcing it. (Not very likely, but we can hope, can't we?)(Reminiscent of the similarly-spelled "G-d is Dead" Time cover in, what was it -- 1968? which marked the resurgence of US religious enthusiasm, and paralleling the "Death of Equities" Business Week cover in 1979(?) which preceded the SM turnaround.) JMB (05/08/01; 10:08:52MT - usagold.com msg#: 53234) A little pop in the XAU/HUI at the moment. Any MDG fans out there with a thought regarding the recent correction? Gold Trail Update (05/08/01; 09:59:55MDT - Msg ID:53233) The Gold Trail Discussion has been Updated The Gold Trail Discussion has been updated. Click on the link to read the latest updates. USAGOLD (05/08/01; 09:39:40MT - usagold.com msg#: 53232) Today's Commentary in Full: Standard & Poor's Says "Accumulate" http://www.usagold.com/onlinestore/special.html Note: Thought I'd post today's report in full as it seems particularly relevant. Enjoy. Those new to USAGOLD should go to the Request Info link at top of page for the information packet reference below.Also: The British coins are moving quickly. If you have an interest, we advise quick action due to the limited supply. I might add that in the many years we have offered pre-1933 coins we have never before been able to offer these items in a group like this. The BU Veiled Victorians are particularly desirable in that I can't remember before having 150 of them to sell in this state of preservation. Most of you know how quickly these offerings can move off the shelf. I don't expect the BU's to last much longer. We now have about 75 left -- if that. 800-869-5115, if you would like to order by phone. If not, the link above will take to our easy-to-use on-line store. "Knowing as much as I do about the way central banks all over the world are printing money like confetti, again to help people pay for the rising price of oil, I now expect the biggest and longest gold boom in a century." Adrian van Eck/ Money Forecast Letter 5/8/01 (www.usagold.com). . . . Gold drifted lower in early New York trade after a quiet night overseas. Comex floor traders report that gold is showing some signs of life despite the upcoming Bank of England auction on May 16. "We have nothing but dealer buying here,'' a COMEX floor broker told Reuters. "With some fund sell stops at the open adding to the negative feeling, and I guess with the euro being weaker, we're seeing a little bit of spec selling,'' he said. ``But it looks like some physical buying holding the market from falling.'' Reuters goes on to point out that the physical market will be well-supported through the Indian wedding season and that "One-month lease rates were steady above 2 percent, with fears of more U.S. interest rate reductions keeping the forward sales premium narrow, an anathema to bears. 'With the contangos and interest rates as low as they are, it takes away a lot of incentive for producer hedging and even for speculative shorting,' said a bullion dealer. 'So I guess the bias for the longer term is probably to the upside, if it stays like this.''' Those of you who like your buy signals wrapped in a nice neat package might take note of a recent assessment of the gold situation by Standard & Poor's. The rating agency has upgraded gold stocks (and by proxy the hard metal itself) from "hold" to "accumulate." It cites rising lease rates combined with lower short term (dollar) interest rate as decreasing hedging profitability and cutting the likelihood of gold breaking the August, 1999 low. S&P goes on to say that the fundamentals are positive on reduced mine output, lacklustre financial market returns and a continued supply/demand deficit. Gold is selling at close to $100 below replacement costs and that will force mine closings. We would add to this bullish thumbnail sketch the observations by Standard Bank of London that over the next five to six years gold production could decline by as much as 35%. That coupled with the tightened supplies for both leasing and selling gold on the part of the world's largest central banks pretty puts a lid on any increase in the supply. Simultaneously, the World Gold Council projects demand increases over the same period of 25% or more. As we have said repeatedly here, do not wait for these circumstances to become headline news in your morning newspapers before you buy. The time to accumulate gold is while things are quiet. Call us for more information and some direction as to how might effectively hedge your investment portfolio. 800-869-5115 (US) ***1-800-294-9462 (Can) **** 0011-800-2761-2761 (Aus) **** 00-800-2760-2760 (EU) TOLL FREE As for Marie Ballard on gold orders of 10 ounces or less. On gold orders over 10 ounces ask for George Cooper or Michael Kosares. For a starter information packet which includes our monthly newsletter generally considered one of the best, if not the best, in the industry, please click here. Yes! We send out packets to international prospective clientele. Randy (@ The Tower) (05/08/01; 09:01:23MT - usagold.com msg#: 53231) The pony express just now dropped off the ECB balance sheet, still hot off the press A quick review of the Eurosystem's weekly consolidated financial statement for the week ended May 4th reveals that the vast stake in gold assets remains unchanged, valued on the books at 118.464 billion euros.In contrast, the net position in foreign currency assets has continued its general decline this week, evacuating another 600 million to leave a book value of 265.8 billion euros. Randy (@ The Tower) (05/08/01; 08:40:30MT - usagold.com msg#: 53230) Poor man's gold The following conversation may or may not have been overheard between two people in line withing the hallway outside the bustling office of Centennial Precious Metals...Poor Man: "I have been putting all of my money in silver. I can't afford to buy gold."Wise Man: "I find that to be an interesting thing you say, for I am myself a poor man. Yet, unlike you, I find that I cannot afford to buy silver because I cannot afford NOT to buy gold!"(Just then, Michael Kosares appears at the doorway.)MK: "Come on in, gentlemen, I'm sure we can help you both." Buena Fe (05/08/01; 08:20:18MT - usagold.com msg#: 53229) Spinmiester's smokescreen getting thinner and less effective! What do you (AG)do when - your prodigy "productivity gains" gets whacked......and employments costs rocket away.....and long bonds lack bids.......and hightech darlings have headaches (Dell)......and the Dow feels overbought along with the $......etc. etc.?You create smoke and dust to distract.......new upgrade on Cisco etc. etc.Well.......the smoke is getting thinner and thinner......and is blowing away quicker and quicker....soon all will see and understand that "THE KING HAS NO CLOTHES ON!" Oh how embarrassing........bye bye Dow $ etc etc......hello gold. Randy (@ The Tower) (05/08/01; 08:15:01MT - usagold.com msg#: 53228) These recent comments by ECB chief economist Otmar Issing may be enlightening to you http://www.usagold.com/goldenchalkboard/gc_otmarissing.html He begins, "The appropriate conduct of monetary policy in an imperfectly known world is by definition a standing challenge for any central bank at any time. It is always difficult to draw a correct picture of the world from sometimes ambiguous and contradicting raw data. And it is hard to devise an appropriate response to new developments that is both free of prejudice, open to new developments, and at the same time coherently and systematically designed not to compromise the fundamental principles that need to guide the central bank's policy in the medium run."Hey FOA, in his latter remark we see parallels with your exceptionally crafted bonsai analogy at the Gold Trail.Specifically relevant to those of us pondering the fate of the dollar, Mr. Issing offers a subtle warning to us while speaking of some of the positives of the euro region. He says, "In contrast to other economic areas, there are also no fundamental imbalances that have been built up over recent years and that may require a correction."As we continue to say, gold offers a FIRM platform of wealth during "a correction". Get you some. Carl H (05/08/01; 07:42:26MT - usagold.com msg#: 53227) Clinton still involved in manipulation? I have noted over the past few weeks that Clinton has made a trip to South Africa and now is making one to China.Keep in mind that South Africa produces about 25% of the world's annual gold production. If the South African government were to take a stand against the Cabal, they could probably break the Cabal.Also keep in mind that China as been dishoarding large amounts of silver. A process that the silver shorts hope continues.Either he and the Bush administration are in Kahoots, or he wants to keep the game going long enough to have the whole mess be blamed on Bush. That would open the door for President Hillary in 2004. (A scary thought for sure!) I wonder what he had to promise the South Africans and the Chinese in 2004 to get their cooperation? Randy (@ The Tower) (05/08/01; 06:17:00MT - usagold.com msg#: 53226) Cry me a river, will ya? http://biz.yahoo.com/rf/010507/n07506320.html During this current comment period, the Bond Market Association has now officially voiced its displeasure with the new capital accords proposed by the Basel Committee on Banking Supervision.While the proposed new formulas call for banks to set aside greater amounts of capital for loans that are riskier, the Association stomps its feet with the objection that such prudence might lead to reductions in liquidity in the debt market. Netking (05/08/01; 04:08:07MT - usagold.com msg#: 53225) SteveH SteveH (53224)It looks positive for sure Steve, I am more impressed though by the double bottom....from which we are now gaining altitude. Normally from DB's you can expect a move of 200% of the previous range of reference, I'm sure that wouldn't disturb too many in these here woods! SteveH (05/08/01; 02:09:19MT - usagold.com msg#: 53224) Question http://www.kitco.com/LFgif/au0365nyb.gif What do chartists or technicians call the last inch of gold chart above, you know, where it forms a bowl? This chart formation looks encouraging, no?? SteveH (05/08/01; 02:06:09MT - usagold.com msg#: 53223) repost The GATA African Gold Summit by Adam Hamilton, CPA, MCSE While the gold price appears to be calm and placid on the surface, powerful forces war behind the scenes in a life or death struggle to shape the gold market of the new millennium. The world gold markets are embroiled in a raging gold information war. The stakes are stupendously high, as the state of the gold market and the price of gold do not exist in a vacuum. Virtually every other important capital market in the world, from the mammoth currency foreign exchange markets to the critical international bond markets, is affected directly or indirectly by the price of gold. Unlike past economic/financial wars, the current war on gold has not degenerated into actual physical conflict. At the dawn of the Information Age, this latest gold war is not being fought with Kalishnakovs and M-16s, but with fantastic new communication technologies centering around the wondrous Internet. It is, in many aspects, a perfect example of a true information war. The currently raging gold info-war is a fight for free markets and for the hearts and minds of investors worldwide. As in most epic conflicts, the combatants of this gold info-war are divided into two camps. The slogan of the first group of soldiers could be expressed in three words, "Gold IS dead!" The battle cry for the second group of warriors could be summarized as "Gold IS being suppressed and a price explosion is imminent." The "Gold IS dead!" partisans can also be described as anti-gold forces. They believe that timeless financial lessons learned in the past do not apply anymore to our fantastically complex global economy. They believe that gold is a "barbaric relic", with no place in computerized and globally integrated financial markets. The anti-gold forces generally think that humanity has finally "tamed the business cycle" and a paper-based, derivatives controlled global financial system can continue to expand at rapid rates forever. This camp believes governments and large private entities can control fiat currencies, markets, and wealth-creation indefinitely. The traditional role of gold as the monetary base and ultimate asset is thought to no longer be necessary by the anti-gold forces because systemic risk has been mitigated through the light-speed, 24/7 global financial infrastructure humankind has collectively created. Through the proliferation of derivatives, the anti-gold forces believe risk can be bought and sold until the markets as a whole never experience a boom bust cycle. With the seductive prospect of no future economic/financial earthquakes, the anti-gold forces believe there is no need for the ultimate rock of financial security, fire-tested through millennia of human history_ gold. Standing in the other corner are the allies of gold. The pro-gold forces are small in numbers but ferocious in resolve. They believe that financial history DOES matter, and that gold will always have the same critical role as the cornerstone of the financial world that it has maintained virtually uninterrupted for six thousand years. The pro-gold forces are generally students of economics, history, finance, and money. They have vicariously witnessed past financial manias and past attempts to cast gold out of the financial system through the eyes of people who lived through these past historical episodes. The pro-gold partisans recognize that markets move in cycles and trends always change. They also realize that the human heart, the ultimate source of greed and fear that drives booms and busts, also changes not through history. Many of the pro-gold forces, after years of study, believe the world gold market is currently actively being suppressed by a few governments and elite private banks for selfish reasons. The governments are trying to cover up past policy failures and protect their 100% paper, backed by nothing but faith and trust, fiat currencies and overvalued equity markets. The private banks enthusiastically jumped into the gold manipulation game because borrowing gold at sub 1% lease rates and selling it provided a virtually endless supply of very cheap capital that could be invested in other markets at an enormous profit. The pro-gold forces believe that after endless research and investigation over the last six or so years the case for a manipulated gold market is virtually unassailable. They note that the laws of economics are ironclad and irrevocable, and can only be cast asunder and bent for a relatively short period of time, as history has taught us over and over. As the gold info-war rages on, there have been victories and defeats for both sides. Generally, however, the anti-gold forces seem to have the upper hand as gold continues to hover near 20+ year lows. The pro-gold armies, although they control miniscule amounts of capital compared to the governments and banks believed to be suppressing gold, make up for their disparity of resources with world-class research, a mastery of cutting-edge Information Age technologies like the Internet, unquenchable zeal, and undying tenacity. Like any good local guerilla army fighting a much larger and better-equipped aggressor, the forces for free gold markets carefully choose their engagements. The next major battle initiated by the pro-gold forces, and potential turning point in the gold info-war, occurs May 10, 2001 in Durban, South Africa. The Gold Anti-Trust Action Committee ( GATA _ www.gata.org ) is hosting an African Gold Summit where crucial evidence will be presented to important African governments, gold-mining companies, mining labor interests, and the media about what has transpired in the global gold market in recent years. With the global physical gold market centered in London and the global paper gold derivatives market revolving around London and New York City, Durban may seem an unlikely battlefield for a potentially decisive confrontation in the gold info-war. It is actually a perfect location, however, as South Africa has critical strategic importance in the global gold trade. South Africa alone supplies around a quarter of the total mined global gold supply each year, with other African nations contributing more gold. At its peak production in 1970, South Africa supplied almost four-fifths of the annual mined gold supply. Gold mining is an extremely important strategic industry to the entire country and region, and the low gold price has exacted a devastating toll on the Africans. The love of gold in South Africa runs deep, it is a crucial macro supplier of gold, and it has born the brunt of the bitter fruit of the anti-gold campaign. There is probably no better place in the world to hold a pro-gold, pro-free market conference that exposes damning evidence of what has really transpired in the global gold markets since the mid 1990s. The line-up of warriors GATA is presenting is simply extraordinary, a veritable "Who's Who" of the gold world. Among the presenters include Bill Murphy, Frank Veneroso, Reg Howe, and James Turk. These are the all-stars and movers and shakers in the fight to liberate the world gold markets! It will be an incredible summit. Bill Murphy is a founder and the Chairman of GATA. He has fought long and hard to illuminate gold market dynamics and to unshackle the gold market to trade free of government molestation. He has traveled to the US Congress to present the dangers of unprecedented growth in gold derivatives. He has spoken with gold producers, gold investors, and gold consumers all over the world. He is also the proprietor of the excellent award-winning contrarian website LeMetropole Cafe ( www.lemetropolecafe.com ) . With his high profile "four-star general" position in the pro-gold forces, Mr. Murphy has extensive global contacts and one of the best gold intelligence gathering networks on the planet. He is one of the most "plugged-in" individuals in the world gold market. Murphy has been commenting lately to his clients on the unnatural tightness in the physical gold market. He points out that sky-high gold lease rates in recent months indicate that physical gold available for lease is becoming harder and harder to come by. He has also been carefully monitoring the deteriorating situation in the gold derivates market centered around the NY COMEX. Physical gold inventories to settle futures contracts that demand delivery have plummeted from around 2.0m ounces at the beginning of the year to around 0.8m in early May. Although one wouldn't know it from the perpetually anti-gold propaganda spewed out by the conventional financial media, it appears there are serious structural problems in the global gold trade percolating menacingly right below the surface. Murphy will no doubt present much more information in Durban about the current state of the world gold markets. It will be a real eye-opener for conference attendees who rely on the mainstream media which is hopelessly disseminating disinformation on gold. As Murphy also probably has many private sources that provide highly valuable gold market intelligence on specific gold market happenings, there is also the possibility that he has an ace or two up his sleeve to throw down for the African governments and gold producers. Frank Veneroso is also presenting in Durban. Mr. Veneroso has been studying the global financial markets for decades and his reputation for gold market analysis is unparalleled. He has consulted for governments and mega-financial entities around the world, and his services are always in demand. He has also presented data to the US Congress on the danger inherent in explosive and massive gold derivatives growth. He runs a renowned global consultancy, Veneroso Associates. Veneroso has been studying gold supply and demand dynamics for decades. As the GATA Gold Summit is by invitation only for elite African gold players, we are fortunate that Mr. Veneroso was kind enough to post a preview of his presentation on the Web. It is located at www.gata.org/veneroso_presentation.html and is highly recommended reading. Veneroso's findings in this preview are simply amazing and could alone rock the gold world to its very core. As everyone from a professor of economics to a child setting up a corner lemonade stand knows, prices in free markets are determined by supply and demand. If supply EXCEEDS demand, prices fall to increase demand and lower supply until a market clearing equilibrium point is reached, where supply exactly meets demand. If demand EXCEEDS supply, however, just the opposite happens in free markets. Prices rise to retard demand and entice additional production online until supply equals demand at a new market clearing equilibrium price. These simple thoughts are literally THE foundation for free markets and economics. Although the immutable laws of supply and demand have been briefly bent historically, no force has ever been able to repeal these laws on a macro scale for a prolonged period of time. Veneroso begins his web presentation preview by outlining consensus estimates of global gold supply and demand, which point to global annual gold demand exceeding global annual mined gold supply by 1500 tonnes, or 60%, each year. He moves on to present his own firm's conservative estimates, which put the annual deficit at much more dangerous levels, over 2200 tonnes, around 90%. The vast majority of the annual gold shortfall is made up by sales and loans of gold from Western central banks. If those sales are interrupted for any reason, or if the gold market finds out the banks are running out of gold to dump, the gold price would roar heavenwards immediately as artificial marginal supply from central banks shrivels up. Veneroso also examines the total gold loan ( gold short ) position, which he and his people believe is 100% to 200% greater than the 5,000 tonne conventional consensus estimate. He goes on to outline reasons why the official data on gold provided by certain London-based organizations is likely to be incorrect. At the GATA African Gold Summit he will outline these reasons in detail as well as present the sources and basis of the stunning Veneroso Associates analysis of the global gold market. At the end of his preview slides, Veneroso notes that there are approximately only six years of central bank gold stocks remaining. This number is amazing as the anti-gold forces have continually led the markets to believe that there are decades and decades of gold reserves left that central banks will sell into the market. Overall, the impression Veneroso's preview leaves is that the Veneroso Associates' carefully researched and documented analysis on the economic realities of the gold market is going to be explosive. The African attendees will realize that the anti-gold campaign has been weighed in the balances of free markets and found wanting. If the gold short position is indeed this large and the central banks are burning through their gold hordes this fast, the potential implications of Veneroso's research are staggering. A man who needs no introduction in the gold world, Reg Howe, will also present in Durban on May 10. Mr. Howe, of course, is the gentleman who launched the incredible legal action against the Bank for International Settlements, Alan Greenspan, and other elite anti-gold players on December 7, 2000. Mr. Howe is the proprietor of Golden Sextant, an internationally renowned website located at www.goldensextant.com which discusses money, politics, economics, and gold. He is a brilliant attorney who has been studying and analyzing the gold market for decades. Since he filed his complaint, he has probably been more responsible for keeping the anti-gold forces awake at night dripping in cold sweat and fear than any other individual on the planet. The Howe v. BIS et al case is tremendously important. We wrote an earlier essay explaining it entitled "Let Slip the Dogs of War". Basically, the complaint contends the defendants in their operations in the gold market have knowingly violated pillars of US law including the United States Constitution, the Sherman Anti-Trust Act, and the Securities Exchange Act of 1934. Howe also contends that some defendants committed common-law fraud. Howe's original case, as well as his response to the expected Motions to Dismiss by the defendants, is available for free quick and easy download in Adobe PDF format at www.zealllc.com/howepla.htm . Both documents are extraordinary and absolutely essential reading for understanding the current gold info-war. In his recently filed response, Howe carefully laid out his arguments and the legal foundations on which his claims rest. One of the most spectacular parts of the document, however, is the revelation of Howe's discovery in official United States Federal Reserve meeting minutes that the secretive slush fund of the US Treasury, the Exchange Stabilization Fund, is apparently actively intervening in the gold market. The Exchange Stabilization Fund, created in 1934 and funded with the filthy proceeds of Socialist President Franklin Roosevelt's robbery of private gold from the American populace, is not accountable to the United States Congress. The US Secretary of the Treasury has direct control over the ESF and he reports exclusively to the President of the United States. The ESF has been used for stealthy and covert interventions in various world markets, usually currencies FOREX, for many decades. In early 1995, major American money-center banks were facing large losses on loans they made to Mexico. The Clinton administration made the decision it wanted to bail the elite banks out, effectively back-stopping their silly bets. Clinton's market manipulating crew ran up against a brick wall when they tried to talk the US Congress into using taxpayer money to bail out the fat cat bankers who had made risky loans in Mexico, however. Congress rightfully refused, realizing that the only way capitalism can work is if traders, both big and small, fully bear all the risk of their positions themselves. Without risk, there is no capitalism. Back-stopping the trades of big US banks only encourages them to act more aggressively in the future and introduces a MONUMENTAL moral hazard problem. With Congress saying "NO WAY!", Clinton's cronies explored their options to make an end-run around the will of the US people as expressed by our elected representatives in Congress. They came up with the idea of using the ESF to bail out their banker friends since it was not accountable to Congress and operated outside of normal oversight authority. In the Federal Reserve meeting minutes from January 31, 1995, there is a discussion exploring the legality of this option. Federal Reserve Board Governor Lawrence Lindsey is uncomfortable with circumventing Congressional will with the ESF. In order to allay his fears, the Fed's General Counsel J. Virgil Mattingly replied and told him about the broad authority of the ESF statute. As an example of this authority, Mattingly mentioned the ESF "gold swaps", and apparently everyone in the room understood the example as no one asked questions. This is an inflammatory revelation because the US Treasury has officially DENIED, to everyone from US Senators to American citizens to the US federal court system, that the ESF has been involved in gold or gold derivatives since 1978. Every communication from the US Treasury on the subject explicitly and forcefully states the ESF is NOT involved in the gold market. Many in the pro-gold community, however, believe the ESF has been used to actively sell gold into the market to stamp out fledgling gold rallies in the last six years. The disclosure of gold involvement by the ESF in a 1995 Federal Reserve meeting is very important and has tremendous implications. Reg Howe will likely discuss the new evidence of US government involvement in gold price suppression as well as legal issues surrounding his landmark complaint against the gold shorts in his presentation in Durban. It is sure to be full of startling and disturbing revelations for the African gold community. James Turk will also be presenting at the GATA African Gold Summit. Mr. Turk is a world-renowned financial market expert and has also consulted for governments and private clients around the world. He publishes the famous Freemarket Gold & Money Report ( www.fgmr.com ) , a prestigious international financial newsletter, for his clients. Turk has lived and worked around the world and has studied the gold markets in far corners of the globe firsthand. He is also a member of Howe's Discovery Committee to review documentation obtained from the Howe v. BIS et al defendants in the discovery stage of the case. Turk has recently written some amazing must-read essays on gold detailing his original research and also spring-boarding off other analysts' findings to arrive at startling new conclusions. He wrote "The Smoking Gun" on December 11, an outstanding analysis detailing US ESF involvement in the gold market by analyzing discrepancies in official US Treasury and US Federal Reserve reports on US gold holdings. Just recently, in late April, Turk published another essay that has far-reaching and enormous implications. In "Behind Closed Doors", Turk further analyzes the revelation that Reg Howe discovered in the Federal Reserve official meeting minutes on ESF involvement in the gold market. Turk analyzes that development, explains what the development means, but also integrates some other analytical work to arrive at a stunning conclusion. Michael Bolser, another outstanding gold market analyst on Reg Howe's Discovery Committee with Turk, had been looking through official US Treasury records on United States gold inventory levels. Bolser noticed that in September 2000 one of the primary US physical gold reserve storage points, the US Mint in West Point, New York, had mysteriously switched the status of 1700 tonnes of gold ( over 20% of the entire US gold reserves ) from "Gold Bullion Reserve" to "Custodial Gold Bullion". Now, as everyone knows, to be a "custodian" over something means that you do not own it, but are maintaining it for its true owner. Even more ominous, there was no change in the "Gold Bullion Reserve" status at all the other US mints. Something odd was obviously up. Bolser wrote the US Treasury to seek clarification on the cryptic status change of 1700 tonnes of gold, but received no reply. Turk, in "Behind Closed Doors", builds on Bolser's research and adds his own explorations of Federal Reserve records to come to the incredible conclusion that the ESF has covertly encumbered over 20% of the American citizens' public gold bullion. This is far beyond scandalous as any changes in US gold reserves require US Congressional approval, which has definitely not been granted. Turk drilled down even further and makes the case that a gold swap of 1700 tonnes may have been executed with the German central bank, the Bundesbank. This would enable the US ESF to stealthily dump physical gold into the crucial European physical gold market directly from Germany without transporting the gold physically from the US, which would cause all sorts of alarm bells to ring in political, economic, geopolitical, and financial circles. Turk makes the case that the Bundesbank now owns 1700 tonnes of formerly US gold on US soil and that the Bundesbank's gold vaults themselves are at least half empty and may even be completely gutted. The potential fallout from this allegation, if proven true, will be mind-boggling in both America and Germany. Like Murphy, Turk has an extensive network of professional gold contacts around the world and his presentation at Durban is sure to be amazing. We have not even mentioned all the speakers at the GATA African Gold Summit in this brief synopsis! It will be an extraordinary event in modern gold history. This critical battle in the gold info-war that will be fought on the African front in Durban on May 10, 2001 could prove to be a decisive turning point in the war. African governments and African gold producers will learn firsthand what the pro-gold forces have uncovered and exactly how the anti-gold forces have destroyed the gold-mining industry and the economies of the African nations that depend on their abundant blessings of natural resource wealth. Formerly highly secretive events of the gold world will be laid naked for the Africans to see what has transpired. Unlike the average private contrarian gold investor, these African countries, mining companies, and labor interests, along with the media, ARE in a position where they can make an immediate, tangible difference and turn the tides in the raging gold info-war. The African governments present at the conference can immediately begin ending the great anti-gold game by publicly and forcefully questioning the US and British governments about their trading activities in the gold market. Tough questions need to be asked. The US Congress, for instance, has been very supportive of the post-apartheid Horatio (05/08/01; 00:48:39MT - usagold.com msg#: 53222) Klinton Klinton goes to China.Who is paying for the trip? Years ago the KGB paid for Klintons trip to Moscow when he was a student.Why is he going?Whats in it for the Chinese ?Is he thier man in the U.S.?Do they own him? Netking (5/8/01; 00:40:38MT - usagold.com msg#: 53221) Galearis - Silver Galearis(53209)Some regional/national disparity in the POS for sure, something for the arb's to take advantage of yes, eg I picked up some more bars over the last week at the converted USD rate of $3.97/Oz...now that will NOT last! Tannehill (5/8/01; 00:29:19MT - usagold.com msg#: 53220) net surfing on Silver Chopsticks Just a little something to think about on a slow Monday evening. Didn't have to work today, tried some net surfing to research my question on Silver chopsticks. Thought I would share the results with the forum. I suspect some intesest in silver chopsticks more likely in Korea, where metal chopsticks are more traditional."In ancient China, chopsticks were always made of silver in the royal family. The emperor was very important to the whole country. To prevent the emperor from being poisoned, servants would test the food with silver chopsticks which change color upon contact with certain types of poisons." link: STUDENT'S NAME: Yung-Ming Ou http://faculty.cinstate.cc.oh.us/~gesellsc/publicspeaking/outline1.html"The wealthy, however, often had chopsticks made from jade, gold, bronze, brass, agate, coral, ivory, and silver. In fact, during dynastic times it was thought that silver chopsticks would turn black if they came into contact with poisoned food. It is now known that silver had no reaction to arsenic or cyanide, but if rotten eggs, onions, or garlic were used, the hydrogen sulfide they released might cause the chopsticks to change color." link: http://www.calacademy.org/research/anthropology/utensil/chpstck.htm"Chopsticks are viewed by some as an art form. In 1987, a New York jewelry designer entered a pair of sterling silver chopsticks with an elegant Grecian Ionic Column design in an international design competition. She won the grand prize, and the chopsticks are now on display in the Cooper-Hewitt Nation Museum of Design. Collectors appreciate the folklore and history embodied in the pieces they acquire and see them as family heirlooms rather than mere utensils." link: http://www.jadedragon.com/archives/cooking/chopsticks.html"Silver utensils have long been indicative of good taste and wealth. It is also believed that silver, if encountered with poison, would discolor. These chopsticks therefore protected those dining with them. Silver chopsticks were especially fashionable in the 1920s and 1930s mainly for their elegance." link: http://www.luxuryfind.com/store/product/13812And finally think about this---"Many poems, riddles, and songs mention chopsticks. They are often used as props by acrobats and dances. And today more than a billion Chinese people eat with them." link: http://www.9c9c.com/english_homepage/learn_china/culture/food_drinks/chopsticks/ That's all from Tannehill ViewYesterday's Discussion.
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