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From the far side -- Sharefin, 23:28:17 09/26/02 Thu

Economist Martin Armstrong has now been in prison for 32 Months deprived of
his Constitutional right to a "speedy trial".
www.armstrongdefensefund.org

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Date: Wed Jan 05 2000 04:24
GoldBird1a (Armstrong-Republic-manipulations)
Whilst I have read a lot on this site about Armstrong and his supposed short
gold position etc etc etc. I just thought everyone should know that it is
all BS. I have worked inside Republic Bank and quite frankly the whole
thing stinks of a major set up intended to frame Armstrong big time.
Armstrong was right about the manipulation of silver and a whole lot more.

Not only was silver manipulated, they do it all the time. If you want to
know the truth, it was Republic who has been behind almost every
manipulation I know of for at least the last 10 years, I've seen it first
hand. Buffet is not lily white and this silver purchase of his was not the
first. The manipulation by PhiBro in 1995 when they exercised the call
options way out of the money was executed by Andy Heck who now works for
Republic. The CFTC went to PhiBro demanding to know who the client was
behind the trade and they refused to give up the name. The CFTC did not do
their job as usual and just walked away demanding that they exit the trade.
PhiBro was owned by Soloman Bros and the authorization to squeeze silver was
given personally by Buffet. Does anyone really think that a small sub like
PhiBro could do a $1 billion trade without board approval from above? It
doesn't end there. Bribes were paid to Russian officials to "recall"
platinum so it could be inventoried. Republic helped Tiger corner the market
in palladium and stored it for them just like they moved the silver from NY
to London for Buffet. This thing even goes back to the manipulation of the
US Treasury Auctions. The Gov’t boys are so stupid, when they threatened to
take the license away from Soloman Bros, Buffet came to the rescue. Ha! He
was behind that trade as well and his name was concealed then as always.
Then that trader left and started LTCM and had a real merry old time. Look
at who his investors were! Just before it blew up, Buffet agreed to bailout
that operation and wrote a letter stating that if his offer was ever
revealed, it would be void. That letter was published in the WSJ because it
blew up before Buffet could put the deal to bed.

The point is, Armstrong was trying to fight the crowd. He knew what was
going on and the word inside the bank was that he might even have tapes of
conversations between a lot of the players. Everyone is really worried about
that for sure. These guys take the market up get all you suckers believing
the rally is real and then slam it again. How do you think they make their
billions? They don't care about bull markets. They shag the markets to make
their billions off of the people who don't have a clue. They rotate between
the markets. All the same names were on the short-side in copper. Sumitomo
tried to fight these guys. They baited the Japanese into the trades offering
them untold credit. They then would short copper against them. Sumitomo
tried to defend their position and ended up buying the entire inventory.
When they had Sumitomo loaded, they ran to the authorities and did them in
calling it a manipulation. They made a fortune on that short trade. To add
insult to injury, Sumitomo ran to Goldman Sacks for help, Goldman started
selling thousands of contracts in copper that day and then accepted the work
out the following day after front-running their own client. Jimmy Goldsmith
was involved in this one as well as Safra, Tiger and a host of others.
They amazingly are all on the right side of everyone of these trades.

Hell - bribes were even paid to bank officials at the Central Bank of
Thailand to start the Asian Crisis! That was the evidence the Japanese took
to the G7 meeting and demanded controls against the organized hedge funds.
The US Gov’t refused to do anything against the group of players because
this thing is so dirty nobody wants the truth out there. They told the
Japs they would agree to sanctions only. That's why Armstrong is being served
up as the Xmas turkey. Quite frankly, he knows too much.

Safra was paying bribes to people inside the IMF as well. They all thought
they had the IMF in their pocket. That's why they all invested so much
into Russia. They even set up Bank of New York on behalf of a rival group of
thugs in Russia and because Republic hates Bank of New York because they
are not part of the club.

These markets are never going to breakout until someone breaks up this
organized mob of billionaires. The Gov’t is either too stupid or they are
involved with them - a high probability! After all, Armstrong had a $1
billion credit line in the bank and everyone knew it. Suddenly, his credit
line was pulled and Republic took $500 million of his clients money
pretending it was never there. That order came from good old Mr. Safra
himself and was carried out by George Wendler personally. And if anyone
believes that story about Safra's death, I guess they believe in Santa Claus
and a few other sudden deaths when the heat got turned up. If Armstrong or
his clients got Safra on the stand, the whole thing could have unraveled.
His bodyguard was changed just after this affair started. You fill in the
blanks.

Armstrong was never short 700 tons of gold. In fact, to get the silver
manipulation going, Armstrong was out of the country and they ran their
orders through Republic to make everyone think it was Armstrong covering
short positions he never had. The records are all there!

All this stuff is on tapes, docs and emails. The question is, will the Gov’t
go along with the big boys and cover everything up again? If so, they say
already Armstrong won't make it to trial. They cannot afford a open trial
with everything Armstrong knows. He probably knows far more than what has
been written here. They just can't afford for the world to know how rigged
this game truly is and how these billionaires really make their money at the expense of everyone else.

That's the real story. Take it for what it's worth.

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Gold -- Sharefin, 22:36:21 09/26/02 Thu

MiningWeb Review- PDF file

Articles:
AurionGold ’s long kiss goodbye
Reinventing the World Gold Council
Ashanti clears the decks, ditches CSFB
Greens ’outrageous mining lies
Govt finds minerals compromise
Mining charter myths smashed
Impala outlines rerating rationale
Wilting Placer price to lure buyers
BHPB expresses concern for global outlook
Shame on the Australian Reserve Bank
Chile may oppose Anglo deal
Bull’s production theory in error?

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Gold -- Sharefin, 22:16:35 09/26/02 Thu

Freeport protected from predators

The law and order risk attached to mining in Indonesia may be working in favour of one of the juggernauts operating there, Freeport-McMoRan Copper & Gold [NYSE:FCX].
When global gold giants and diversifieds for that matter have a glance at the copper and gold output figures coming out of Freeport's freak of nature, Grasberg, they might be inclined to do a double-take like this writer did to check they're not seeing things.

Freeport's chairman and CEO, Jim Bob Moffett, said from Jakarta yesterday that he came away from his visit to Grasberg this week on a "real high", and why wouldn't he have been after hearing of the above-budget numbers the super mine was expected to generate.

Aggregate mine production and sales for the September quarter were forecast to exceed a whopping 510 million pounds of copper and 1 million ounces of gold as higher-grade open cut ore continues to be mined, Moffett reported, with Freeport's attributable share totalling more than 440 million lb and 840,000oz. These results would set new quarterly production records. "We're going into the next quarter with a lot of momentum," he said.

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Gold -- Sharefin, 22:12:14 09/26/02 Thu

Barrick Gold cuts profit forecast; shares tumble

Just days after unveiling a massive expansion plan, Barrick Gold cut its profit guidance Thursday, citing high production costs and softer sales.

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Strange how they can cut a profit when gold is falling to $250 yet their margins fall off when the price rises above $300.!!!!

Must have been the hedging.(:-)))))

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Gold -- Sharefin, 22:07:10 09/26/02 Thu

Gold recycling jumps 50 per cent as new gold becomes dearer

India, the world's largest gold buyer, witnessed a decline in imports this year as volatility in gold prices drove consumers to recycling instead of indulging in fresh purchase. India's demand for gold dropped 40.5 per cent in the second quarter (April-June) this year since Indian demand is sensitive to price movements. In contrast, according to World Gold Council (WGC), use of old gold witnessed a 50 per cent jump during February and June this year as against 22 per cent during the same period last year. “Volatility and high gold prices drove price sensitive Indian buyers to recycling than investing in fresh purchases,” G.S. Pillai, WGC' regional director for India, told Business Standard. A study covering consumers, goldsmiths and scrap dealers carried out by the WGC revealed supply of recycled bars surged leading to widening of the gap between the prices of new and old gold. Heavy fluctuations in gold prices deterred Indian buyers who in turn reused old gold ornaments. Traders said supply of old gold grew and prices touched the $ 320 per ounce level because consumers exchanged old jewellery for new designs. “The volatile international bullion market, with gold rates swinging between $290 to $330 an ounce since January this year, led to drop in demand and only if the prices come down will sales pick up,” Naresh Khandelwal, a bullion trader in Delhi's Chandni Chowk said. Both trade and consumers held back from purchases. Dealers said they expect buyers to stay away from the market at current price levels and volatility. “Firm gold prices are deterring consumers from buying as much gold as they normally do during the festival season. Local demand picks up in mid-August and peaks in early November with Diwali,” Khandelwal added. “The industry is hopeful that once the sharads are over and navratri begins, sales would pick up even if the quantity bought is lower,” Pillai said.

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Gold -- Sharefin, 22:05:40 09/26/02 Thu

S. Africa political risk for miners, banker says

South Africa, home to many of the biggest gainers among gold mining shares this year, may also make life difficult for investors. The government there is considering proposals that would require 51 percent of new mining operations, and about a third of existing mines, to be owned by blacks, the country's majority, within the next 10 years.

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Gold -- Sharefin, 22:01:58 09/26/02 Thu

World's smallest miners may win big

Plus: S. Africa political risk for miners, banker says

The smallest gold mining companies will play catch-up with their larger counterparts when the rally in gold prices resumes, experts say.

In the gold industry, they're called juniors -- the small exploration companies -- and they offer the most upside potential in a rising market for precious metals, according to an array of analysts, geologists and executives who appeared this week at a bullion conference in New York.

"Juniors are the one place to be," said K. Brent Cook, a mining analyst at Global Resource Investments who is also a geologist. He's one of the few mineral experts on staff at a U.S.-based financial company.

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Gold -- Sharefin, 21:42:55 09/26/02 Thu

The money trilogy: Gold, interest rates and the dollar

TRADING TECHNIQUES
Sometimes the best trading systems are based on simple proven concepts without a lot of modification to muck up the process. One basic fundamental relationship exists among gold, interest rates and the dollar. Here, we explain the link in both historical and modern- day terms and show some straightforward ways to exploit it.

Currency, gold and interest rates have a complex interaction that has worldwide effects and a strong historical basis. Gold has been used as a currency for millennia. At one time, most of the world defined its money relative to gold. The world long has abandoned the Gold Standard, but gold as a currency link still weighs on the monetary system.

The interaction between gold, currencies and interest rates affects current and future mortgage rates, corporate profits and the strength of the job market. It is important to examine this relationship and its interaction in today's world markets. Having done so, the next step is developing some simple trading strategies based on what we have learned.

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Gold -- Sharefin, 21:14:33 09/26/02 Thu

Should you sell your S. African gold shares?

Funds defend South African golds

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Gold -- Sharefin, 21:12:59 09/26/02 Thu

Gold bears slink in the shadows

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Gold -- Sharefin, 21:11:56 09/26/02 Thu

A Top in Gold at $330?

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Gold -- Sharefin, 21:09:49 09/26/02 Thu

The glory of gold

They came for fire and brimstone. They got it. They are gold bugs; a 3,000 strong congregation that descended on the Marriot Marquis in Manhattan for the fifteenth annual New York Institutional Gold Conference.

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Gold -- Sharefin, 21:07:17 09/26/02 Thu

Is the best behind gold stocks?

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Gold -- Sharefin, 20:53:51 09/26/02 Thu

Selling South African golds

Dr Frank Lucas, head of boutique banking house Loeb Aron, issued a blunt sell on South African gold stocks, causing something of a commotion at the New York Institutional Gold Conference.
Speaking with unusual candour, the quintessential English banker said his firm was "very long physical precious metals and lightly exposed to SA," a position that would be sold down in coming weeks.

Slicing effortlessly through the blanket of political correctness that smothers discussion about SA, Lucas laid out a case for quitting its gold stocks and, by default, the country itself. His view has nothing to do with Afro pessimism or any other ism, simply a desire to stay married to his capital.

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Fiat -- Sharefin, 20:50:31 09/26/02 Thu

Gold 'QQQ': Key to a precious rally

Security to benefit from bullion boom, experts say

Would an electronic substitute for physically owning gold boost demand for the metal in times of fiscal turmoil?

The World Gold Council, a bullion trade group, acknowledges it is working on a new investment vehicle for gold but offers few details. Experts at a New York bullion conference say they expect such a security, probably in the form of an exchange-traded fund that is listed on the New York Stock Exchange, in coming months.

"I think Chris Thompson's product will make a big difference," said Rick Rule, chief executive of Global Resource Investments. Thompson is the new chairman of the gold council, whose charter is to increase investment demand for gold. "If it's backed by the gold council and there is a big, recognizable gold depository involved, it will be a big success."

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Fiat -- Sharefin, 20:39:50 09/26/02 Thu

A Tale Of The S&P500 P/E Ratios Over 75 Years

A reasonable and common-sense person can logically come away from a reading of this essay with the idea that we have completed a very large bull market top in the period from 1996 to 2002, and that we are now only in the early stages of a long and deep bear market that potentially has a very long way still to fall before prices reach fair value again.

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Gold -- Sharefin, 20:11:10 09/26/02 Thu

Is silver a better hedge than gold?

In times of crisis like these, silver may offer a safer haven than the traditional refuge of gold, but there are fewer stocks with exposure to silver,

Some fearful investors have fled imploding stock markets for the traditional haven of gold. But several observers say silver offers more for the worried and weary.

"It's a hedge against chaos and confusion, just like gold," said Ross Beaty, chief executive officer and chairman of Vancouver-based Pan American Silver Corp. "Silver's the poor man's gold."

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Gold -- Sharefin, 19:39:25 09/26/02 Thu

Gold execs make bold bullion bets

Executives from some of the world's most successful gold companies say they expect further gains for the metal.

The gains could come in the next several months, as a confluence of events shakes investor faith in traditional investments such as stocks, bonds and currencies.

The message coming from gold executives and the newsletter editors and fund managers who specialize in precious metals is that they expect gold to pierce $325 to $330 an ounce, a level that has repelled further advances thus far this year.

"I don't see $350 as a high," said Richard Sacks of Phoenix Advisory, a Chicago money manager who specializes in gold mining companies. "I see far higher."

"We probably won't get through the year without gold going to the next level," said Robert Bishop, editor of Gold Mining Stock Report.

"In the end game, you have to own gold, physical gold, in some shape, to be prepared for what the financial world has in store for us," said Sprott of Sprott Asset Management. Sprott owns 19 percent of a closed-end gold and silver fund, Central Fund of Canada, that trades on the American Stock Exchange.

Others were even more enthusiastic. "I think we're headed into a major bull market for gold," said John Brock of Brock Management Co. in Boston. "Thousands of dollars an ounce."

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Magnetic Silver -- Cobra, 16:38:43 09/26/02 Thu

Send any suspicious magnetic silver items to
Bart at Kitco.....he could assay them. Most
refineries have an assayer on staff. This
would get to the bottom of this riddle. Every
time I send in scrap gold for refining I have
to pay for an assay and the assayed item is
always returned to me. Assay's are under $50
usually with most refineries. Spend the money
and find out what you have that's magnetic.

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@ giovanni on magnets -- Galearis, 11:14:27 09/25/02 Wed

Fridge magnets would not be my choice for your project. They are, after all, only designed to be strong enough to hold a couple of pieces of paper on a fridge door. I use a pair (attached in tandem) of quite powerful "button" types of magnets. These would be used to hold cupboard doors shut, for example, and will very firmly hold the weight of a steel tableknife.
A good small horseshoe magnet available in J.C.Penny stores or a Woolworth's would also be equivilent; just slightly more bulky.

I might add that one metallurgical engineer in Toronto is disturbed enough by the news of magnetic sterling that he is now checking stores with his magnet. His estimate (speculation) is that it would take a 50% alloy of nickel to silver to get a ferro-magnetism response as described. That is a FWIW and report from another party (handle: Sierra Madre) at the USAGold forum. So far all my conversations with metallurgists would indicate a problem with this magnetic response. To date that has been two individuals - with six email queries to others and no responses as of yet.

Best regards,

G.

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@galearis - silver institute -- giovanni dioro, 09:01:00 09/25/02 Wed

I appreciate your comments, and I have to agree that I thought that "density" comment was ridiculous as well.

I went out looking for a magnet and all I could get was a good-sized fridge magnet. I tested it on a few coins I had. It was negative on the 1 oz. pure silver coin, negative on a common 20 cent euro coin, and magnetic on the silvery part of the bi-metalic euro coin which is nickel I believe.

By the way, what kind of magnet are you using?

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@Sharefin & Giovanni -- Galearis, 07:52:33 09/24/02 Tue

What the Silver institute is (hoping?) thinking that some of this magnet action with the sterling chains is related to silver and its superior conductivity. The statement about density is silly, or we should see similar behavior with gold. A metallurgical expert, by the name of Gordon Franke, responding in the thread to the Tim Wood piece opinioned that a strong electrical field could induce a "sway" reaction in a superior conducting element such as silver. The concept was also speculated about on Eagle Ranch Forum - where this whole topic is still boiling.

From what Mr. Franke was saying, he did not have personal experience with what I and others are seeing - nor does the Silver Institute as of yet.

There is a world of difference between "sway" and "stick".
I am seeing "stick" after "sway". The magnetic reaction is not a light one that simply induces very slight movement in the jewellery.

If for whatever reason the manufacturers are silver plating (or rhodium plating) a 25-50 micron layer over another 25-50 micron layer of nickel, would THIS reality be enough to stick my one troy ounce sterling chain (for example) to my magnet?

Or, as the Silver Institute opinions, is there a deeper core of some magnetic element or alloy. I should point out that stainless steel may also be variably magnetic. I should also point out (from my researches) that alloying magnetic elements with other non-magnetic elements in some circumstances DESTROYS magnetism. All magnetism in this jewellery implies a very great potential for this being fraud. It does not prove it.

The Silver Institute is correct, however, there must be an assay, and if there is a problem, appropriate steps taken.

Best regards,

G.

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Giovanni - Galearis -- Sharefin, 03:54:34 09/24/02 Tue

Just a qucik note as I'm away on holidays for a few days but here's what I've just been sent by The Silver Institute.

----------------
Thank you for contacting the Silver Institute regarding a story written by
Tim Wood in Mining Web alleging that some major U.S. retailers are selling
jewelry falsely marked as sterling silver. Like you, we were troubled with
these allegations.

If in fact junk jewelry marked as sterling is being sold as sterling then
this is fraud. Fortunately, there are ample consumer laws in the United
States at the state and federal levels that would apply in these instances.
The retail outlets should take the necessary steps to assure themselves
that what they are selling is indeed sterling.

Neither silver or copper are magnetic, so on the surface the magnet test
seems useful. However, some metals professionals maintain that if one drew
a magnet slowly across a piece of sterling silver, one might experience a
slight drag because of the density of silver. It can be further
complicated, because jewelry with a coating of 925 sterling over brass would
not be magnetic.

Simple testers that could be used in a jewelry store are not available. A
sophisticated commercial tester for silver (and most other elements) is an
x-ray fluorescence analyzer, which can be either portable or in bench form.
However, this instrument will only identify the atoms on the surface, not in
the interior of the piece of jewelry. To get at the interior, the piece
would have to be cut through and the middle exposed to the instrument.

One possible solution is that retailers should request that suppliers
provide an additional piece of jewelry for every 100 pieces purchased for
destructive assay. In this way the retailer can check on the quality of the
silver being supplied. There is no other sure way to determine the true
silver content.

There are a number of organizations that represent the jewelry manufacturing
industry, most notably the World Jewelry Confederation (www.cibjo.org) and
the Jeweler's Vigilance Committee (www.jvclegal.org) that you may want to
contact on this issue. In addition, you can contact the Federal Trade
Commission for federal consumer information at www.ftc.gov. There you will
find many consumer education brochures and instructions for filing an
electronic complaint.

Thanks again for contacting the Silver Institute. We will continue to
monitor this issue.

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@giovanni dioro & Sharefin re the sterling problem -- Galearis, 18:40:04 09/23/02 Mon

I should point out that there are at least two conditions for a good scandal: 1) the bad news and wrong doing must be real and verifiable and 2) the news actually has to get out to the greater number of the mainstream public.

To bring readers up to date I must state that just today a sample of magnetic sterling chain was sent the the (Canada) Competition Bureau for the purpose of assay by the Canada Mint. We will not have news for a while yet about 1) and it may not even be verified and that makes 2) even more more questionable.

My problem with these jewellery items was always their magnetism. In the past this always indicated plated items over steel (for example), and hence was a test for fraud sterling. Right now we do not know whether or not this stuff is being alloyed with nickel - which is not illegal, just stupid - or some other "suitable" metal that would still be within '925' purity standards and STILL make the items attractive to magnets.

If the Competition Bureau finds for my complaint, that was sent in three weeks ago to the day, we may have a REAL story. For now it is still only speculation and a minor pain in the posterior for dealers of used jewellery.

Whether (and if it IS a real scandal) this story has negative or positive impacts on the silver industry is yet another debate.

Whatever the final results, however, it should be known out there that a lot of magnetic "sterling" silver is now in sight to come down the tube. That is really all we have right now.

Best regards,

Galearis

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silver fraud -- giovanni dioro, 12:05:29 09/23/02 Mon

Sharefin, this is very interesting and exciting. You cite the positive aspects of this "alleged" fraud. Remember what Buffett did to the silver market when he bought up 129 million ounces - the price of silver initially rose around 30% (then higher when the Buffett followers moved in). Who knows how high it would have gone if Buffett (probably taking orders from his minders) hadn't talked down his investment and then leased it out.

Like you said, this alleged silver plating scandal could acount for a similar amount on a yearly basis to Buffet's stake. Such a significant stake can move markets when it buys up supply at the fringe. Also we must also take into account that the once humongous US stategic stockpile is just about empty. The prospects look good for silver.

We must however realize that a scandal of this magnitude could seriously damage consumer confidence in buying silver jewelry and thus hurt demand for silver and thus its price. Perhaps you have got no response back from the Silver Institute because they are scared of bad publicity and/or for legal reasons they won't comment.

I do hope they find out who is perpetrating this fraud and throw the book at them. In the era of easy money, false profits (prophets too), accounting scandals, etc., this is no surprise.

Caveat Emptor

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Gold -- Sharefin, 08:29:44 09/23/02 Mon

Australia's Newcrest Books Huge FY Loss On Hedging

Australian gold miner Newcrest Mining Ltd. (A.NEW) reported late Wednesday a wider-than-expected net loss for fiscal 2001-02 due to its foreign exchange and gold hedging positions.

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Gold -- Sharefin, 08:25:29 09/23/02 Mon

Canadian gold groups agree $2bn merger

Three Canadian gold companies agreed on Monday to merge, creating the world's seventh-biggest gold producer, with market capitalisation of over US$2bn.
In the latest move in the fast-consolidating sector, Kinross Gold is leading a three-way all-stock merger with Echo Bay Mines and TVX Gold. As part of the deal, TVX is also paying US$180m to buy out the 49.9 per cent stake in its TVX Newmont Americas joint venture held by Newmont Mining, the world's biggest gold producer.

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Gold -- Sharefin, 08:23:03 09/23/02 Mon

Soft demand curbs price rise

The concerted dehedging programs of the world's major gold producers have not had the effect on the gold price many gold devotees had been hoping for. Although the reduction of hedge positions by miners, and therefore selling pressure, has helped boost the gold price, it has been largely kept under wraps by the decline in physical demand, according to a leading gold analyst.

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Another bearish article from The Mining Web.
On wonders who sponsors them & why!!!

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Gold -- Sharefin, 08:12:38 09/23/02 Mon

War threat quickens the pace of gold's rise

The fact that the gold price had moved gradually higher was a good signal for industrial and jewellery demand in the months ahead, O'Connell added.

"Physical buyers generally hold back when the market is volatile, but at the same time this volatility encourages speculators," she said.

Moreover, the bleak economic outlook in the US and Europe was encouraging the return of professional investors from these regions, "something that has been missing from the bullion market for the past 15 years or so".

O'Connell said: "Gold is now doing its job as a hedge against depreciation of value . . . Speculators use periods of volatility to try to make money, while investors want to preserve their wealth."

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Gold -- Sharefin, 08:05:49 09/23/02 Mon

AurionGold on the brink

Persistent Placer Dome [NYSE:PDG] is on the verge of moving to majority control of takeover target AurionGold [ASX:AOR].
Buoyed by a rush of acceptances in the run-down to the sixth extension expiry last Friday night, Placer had no hesitation in extending its bid for a seventh time, until 2 October. And why not after surging to 42.45 per cent ownership (from 38.05 per cent). A couple more waves of acceptances like last Friday's and AurionGold will no longer be the largest independent Aussie gold producer, but a subsidiary of the Canadian global gold giant. That would have ramifications across the board, whether the AurionGold directors decide to finally recommend the offer or not. It's definitely crunch time for die-hard AurionGold shareholders.

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Gold -- Sharefin, 08:02:25 09/23/02 Mon

World's most profitable gold company

Ian Cockerill has been integrally involved with Gold Fields' rise to global status in the past four years. He has been significantly influential in Gold Fields' remarkable advance as South Africa's largest gold-mining company by market capitalisation as at the time of going to press and its new current status as the world's most profitable gold company. Cockerill was carefully selected for his operational excellence by astute former CEO and current non-executive chairperson, Chris Thompson.

In succeeding Thompson as CEO this June, Cockerill, 48, has strengthened the operations team with some key appointments - without interfering with the three-pronged strategy that was put in place after his arrival at Gold Fields from Anglo Gold three years ago. The hallmarks of this strategy are inward investment in cost reduction, growth and market development.

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Gold -- Sharefin, 07:55:58 09/23/02 Mon

Gold giants face production challenge

The challenge facing the three North American gold mining giants is daunting as they struggle to generate production growth at the same time as they must find almost 17 million ounces of gold a year just to replace reserves.

The gold mining industry is facing the prospect of declining production, said Douglas Pollitt, a mining analyst with Pollitt & Co. Inc., a Toronto investment dealer.

"Three of the four projects Barrick announced development plans for have been kicking around for years," he said.

The producers have all been mining high-grade ore in order to help sustain profitability as a result of low gold prices and when they start mining lower-grade ore their production will drop, Mr. Pollitt said.

All three companies -- Barrick, Newmont and Placer Dome -- have also been growing by acquisition and that, in itself, could create problems down the road.

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Fiat -- Sharefin, 07:13:00 09/23/02 Mon

Open Letter to America from a Canadian

The only relation to this is that when one understands why, then one removes debt & buys gold.

Simple...

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Periodic Ponzi Update PPU -- $hifty, 23:23:52 09/22/02 Sun

http://home.columbus.rr.com/rossl/gold.htm

Periodic Ponzi Update PPU

Nasdaq 1,221.09 + Dow 7,986.02 = 9,207.11 divide by 2 = 4,603.55 Ponzi

Down 198.49 points from last week !

We have a new all time Ponzi low !

65.65 points lower than the old record low set on 7/19/02

Thanks for the link RossL

Ross did you excavate the chart again? or am I getting a bit of vertigo?

Go GATA !

Go Gold !

$hifty

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Bob Chapman - International Report -- Sharefin, 22:31:05 09/21/02 Sat

As of this writing the FTSE, the Financial Times 100-share index, is trading at 3,813. If you remember over the past year we have made you aware of a formula we keep that gauges relative affect of the FTSE in relation to the Dow. We predicted that when the FTSE reached 3,772 it will have reached the level it was at in March 1994 when the bull market began. Thus at 3,772 all the gains of eight years will have been lost. At that same time in 1994 the Dow began its assent, yet the Dow is still up 3,981, which is the result of manipulation by the Working Group on Financial markets. It means that in order to reach the level that the FTSE has fallen to, the Dow has to fall 3,981 points to Dow 3,961. This gives you an idea of how overpriced the Dow is and it leads us to believe that the next downward move in the Dow will be a free-fall plunge. Perhaps a 3-4,000 point plunge in a matter of three to four weeks. It also means gold would quickly go to $512 an ounce and perhaps to $840 an ounce. We fully expect this to happen. Everyone should now be long gold and silver shares, short the market and own the Prudent Bear Fund, which can be purchased through Rich Radez at 800-285-1700. We bought this superlative investment fund at $4.75 a share in January. It passed $8.00 a share on Thursday. This is your last chance to buy for mega gains, don’t hesitate, and act now.
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JP Morgan Chase’s credit rating downgrade, which knocks them from the AA pinnacle to the A+A1 level, prohibits them from dealing with central banks, which in turn should mean they couldn’t lease bullion unless dealing with another bank. Do other banks have bullion to lease? We don’t think they do. That also raises the questions what becomes of the leased gold bullion position and what happens to their derivative positions? Must they unwind them? Due to the downgrade do counter parties have the right to alter their positions? Morgan’s shares have been trading under $20.00. If $19.00 breaks will that drive gold over $330 an ounce? There is a good chance the event will do that. All this is exacerbated by a current account deficit, which means a lower dollar, which puts further upward pressure on gold and further downward pressure on Morgan’s share price.
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Investors who have held stocks and funds for five years are now about even. One more move downward and they will be liquidated. That may have begun with funds losing $52.6 billion in July. The funds are not gathering cash they are spending it. When heavy liquidation comes they’ll have to do some mighty selling. The Dow dividend payment is still a paltry 2.2%. So what is one to do? That’s simple; one buys gold shares and should have been doing so since April 2000 when we recommended one to do so. People who hold paper currencies are getting screwed, even if they are in Treasury paper. Bonds are still certificates of confiscation in the final analysis Gold has moved up while the TIPS spread, the yield premium regular Treasuries pay over inflation-protected securities, has contracted. Gold is where the stock market was in 1982 at about 800. That Dow went to 11,700. Are you getting the picture? Gold would have to go to a minimum of $1,800 an ounce just to play catch-up. After that, who knows? Markets are famous for overdoing things. We could see $2-3,000 an ounce. Can you imagine where gold stocks would be? *Goldcorp over $200 and *Agnico-Eagle over $400 a share. All those exploration and rising junior producers could all go from 50 cents to $50 a share. In the 1930’s Homestake made a move, which could easily be emulated by *AEM and *GG and Durban Deep and ERPM went from 25 cents to $52 and $55 respectively. That’s a fact, we were there, and our clients made fortunes. Gold is so cheap and it acts so beautifully. This is your last chance to join us on this wild journey, don’t be left behind.
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Barrick plans to reduce its forward sales position by 1/3, to 12 million ounces from 17.9 million by the end of 2003, this would equate to 15% of the company’s current gold reserves as compared to 22% today. This is still a large hedge position and considering the horrible damage Barrick has visited upon owners of gold and gold shares over these many years, we still recommend the stock as a sell.
The First China Silver Conference was held in the Inner Mongolia Autonomous Region. Attendees heard that silver was in short supply and that silver supply through traditional channels had failed to meet manufacturers’ demand for 12 years. Last year the shortage was met from government reserves, particularly from the US & China. China supplied 4 million tons of the total 86 million ounces of silver traded last year by governments on the global market. It will be interesting to see how much China sells this year and next. They could well be cooperating with the US government, suppressing prices.
A recent Merrill Lynch update on the gold sector found: Rating on cash flow for 2002 had *AEM first and *GG third; on cash cost *GG was second with $93 and *AEM third with $145; total cost per ounce *GG first at $119 and *AEM third at $195 per ounce. As you can see these are two top unhedged gold and silver producers.
The proof of the pudding is in the tasting. The XAU is up about 35% this year and the HUI, which is almost unhedged, is up over 100%. Gold is up 14%. Gold funds have doubled or tripled in size. The gold mining industry shares are still only worth $60 billion. That presents super leverage. As yet, the amount of money put into gold and silver shares, bullion and coin is a pittance compared to other investment medium. There has only been $107 million go into American Eagle coins. What this all means is that once investors catch on these investments will explode. Some of these 30 cent gold shares could easily go to $30. We have seen it happen before over the last 42 years. We are facing world wide financial, fiscal and monetary systemic risk, which engenders a flight to quality. Just as in 1930-32 the gold shares are predicting a deflationary depression and most professionals are too stupid to see it or have a vested interest in lying to their clients. If you want to participate consider two of the best-unhedged mining companies in the world, *Agnico-Eagle (AEM-NYSE) and *Goldcorp (GG-NYSE).
There is no question in our minds that George W. Bush is trying to get us into war as fast as possible in order for the conflict to precede the collapse of the stock market. Profits are not standing up. The S&P estimates of $57.50 are now down to $48.50 to$51.00. Our estimate last November was $45.50. Profits from financial companies over the past five years have been a disaster as previously set interest commitments are ripping bottom lines apart. On top of that pricing power is gone, inventories are again up and sales are drying up. JPM’s shares are falling again soon to revisit $19 a share. Who would want to buy stock in a company with 35% of the $72 trillion in world derivative exposure? Every professional worth his salt also knows they are manipulating gold and if they make one major mistake, or gold climbs higher based on some event, their company will collapse. The same is true at Citicorp, AIG, BofA and Goldman Sachs, etc. On the other hand are all these positions for the US Treasury? We don’t know but sooner or later we are sure to find out. As we said 2-1/2 years ago the central banks and agencies are short or have sold 15,000 to 29,000 tons of gold and that gold is gone forever. Without that overhang, with producers reducing hedges, with a 1700-ton annual shortfall of production to demand, we can most assuredly tell you gold is going higher, much higher. Now you know why we predicted war as a cover three years ago. This is going to be a wild ride and those in gold and silver should do very well.
As we predicted, a federal judge dismissed fraud claims against 11 insurers, which is a big setback to JP Morgan. It is now stuck with $965 million in losses on gas and oil trade with Enron. The insurers refused to pay because the deals were shams intended to hide loans.
Newmont is very slow exiting their hedges and very uncommunicative and arrogant in their treatment of shareholders. In addition their dumping of their shares in Lihir has endeared them to no one. It is now very obvious they took over Normandy knowing the losses they’d have to absorb if they attempted to exit their hedges. We have been a seller of the stock and remain so until those hedges are bought in.
The recent release by Normandy was very misleading. Normandy may have reduced their hedges, however Newmont still had 6.6 million ounces on their books as of the end of the second quarter. Newmont’s hedge book was a negative $364 million. That means they still are in tough shape if gold goes up.
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SUBSCRIPTION INFORMATION: email: bif4653@comcast.net

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Fiat -- Sharefin, 20:30:17 09/21/02 Sat

Credit Bubble Bulletin, by Doug Noland

What an absolutely Dreadful Week for Structured Finance. Where do I begin…

The derivatives market is clearly becoming a very dangerous world. The Office of Comptroller of the Currency reported that total U.S. bank derivative positions increased $3.8 trillion during the second quarter (33% annualized!) to $50.1 trillion. Interest rate derivatives increased $3.4 trillion to $42.7 trillion, with “swaps” adding $2.9 trillion to $29 trillion. JPMorgan Chase only added to its dominance of the marketplace, with total notional positions increasing more than $2.7 trillion to $26.2 trillion. As financial professionals and portfolio managers, we look with concern when an institution continues to expand positions aggressively in the face of losses and a hostile market environment. When such an institution dominates the marketplace and is a key player in the U.S. and global financial system, continued expansion makes us very nervous.



This week JPMorgan Chase finally began to admit that things have gone sour and, importantly, that they have soured across the spectrum of its businesses - as we describe it, the “risk” market. “Houston, we have a problem.” Perhaps we will someday better understand if it has been a case of somewhat forgivable denial or, more likely, desperate obfuscation. For now, this is clearly a huge blow to structured finance and the U.S. Credit system. JPMorgan is everywhere, from interest rate and currency derivatives, to syndicated bank loans and collateralized debt obligations, to Credit insurance and liquidity agreements, to ABS, corporate, consumer and muni finance. They are the poster child for the “efficient” U.S. financial system so often trumpeted by Alan Greenspan - the heart and soul of “structured finance.” They are surely the undisputed King of off-balance sheet finance, as much as chairman William Harrison would now like us to believe the bank has been a victim of corporate chicanery. It looks to us like he has been operating the House of Chicanery. JP Morgan must be rolling in his grave. This bank is not the victim, but a major culprit of the myriad ills that today have so weakened our financial system and economy. To what extent this bank is a spreading terminal cancer only time will tell, but the diagnosis is not favorable. The trust is gone and financial markets are built on trust.

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Fiat -- Sharefin, 20:27:23 09/21/02 Sat

Credit Bubble Bulletin, by Doug Noland

What an absolutely Dreadful Week for Structured Finance. Where do I begin…

In a development that should keep other risk players awake at night, FSA has abruptly been transformed from “prudent” asset-backed guarantor to THE critical financial partner in a failing subprime lending business. This is big. Similar to many others operating financial speculations based on sophisticated “risk” models, we expect FSA is in store for surprisingly enormous Credit losses that their risk models would have calculated as an impossibility. Dexia, FSA’s European parent, saw its stock sink 15% this week. We have the sense that this week marked a major inflection point with many players now in the process of reevaluating risk models, financial guarantees and, perhaps, “structured finance” in general. For sure, recent events have been another major blow to the vulnerable asset-backed securities market and one more chip knocked off the bull market phenomena of Credit insurance.

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Silver -- Sharefin, 20:24:37 09/21/02 Sat

Giovanni
I sent an email to the Silver Institute regarding the silver scam asking for their industry position & any comments but have not received a reply.

Also I was chatting with a friend re the silver scam and sent him the following which I thought you'd find interesting;

The following stats are from my CPM database on silver supply/demand:

From 1995 to 2000 silver jewelry has accounted for approx 250-300 million ounces per annum.
During the same time frame demand has been between 750-850 million ounces.
Jewelry therefore is approx 33-35% of total demand.

Silver production during the same period has been approx 380-480 million ounces with the rest coming from stockpiles & recyling.
Basically 52% of demand is being supplied from mine production - the rest from above ground stocks.
This is approx 350-380 million ounces of silver being removed off the shelf each year.

Jewelry as a percentage of mine supply runs at approx 62-67% which is an awesome amount.

That they have channeled silver from jewelry to other areas speaks of the shortages.

If they had to rob those other areas of demand to rechannel back into the silver jewelry area then there would be an even greater shortfall.

If this fraud was to amount to 100 million ounces (approx 30% of jewelry - just guessing) then that 100 million ounces has to be taken back from other sectors to rebalance the jewelry supply.

The global stockpiles that are being eaten up by the deficit would have an extra 100 million ounces demand placed on them.
This would equate to an additional 25% increase in the deficit at a time where stockpiles are almost being emptied.

As you can readilly see the increased preasures on the silver industry supply side is awesome.

This fraud is an awesome amount if only 30% of jewelry - if it's 60% then watch out.

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central bank overhang -- giovanni dioro, 10:24:01 09/21/02 Sat

sharefin, agree with what you say, nonetheless the overhang of gold owned by the Swiss Central Bank has been a big dampener on price. I must say however that gold has performed quite well regardless of the agressive selling by the swiss.

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Gold -- Sharefin, 02:00:09 09/21/02 Sat

Wishful Thinking!

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Seems to me that the Professor is showing wishfull thinking in presuming that the Central Banks coffers are full to overflowing & that they are ready to sell.

I would hazard a guess that their coffers are well under half full & that they are in fact reluctant to sell into a rising price.
Evidence is available to support such.

Also the Professor states that because the miners are closing out their hedges that such gold as has been lent against them is being returned to the Central Banks.
Once again we have a very flawed asumption.

I am presuming that miners are utilising their banks accounts to pay out their hedges in fiat rather than physical. And in doing so the Bullion Banks are not passing this onto the Central Banks. Instead they are holding their obligation to repay such Central Banks with physical gold open.

The evidence for this is noticable in the latest OCC Derivatives report when whilst the miners have reduced their hedging the Bullion Banks have increased theirs.

It appears to me that the esteemed Professor has served up some hashed up presumptions that on inspection appear to be far from the truth and these points invalidate his whole article.

Why would one attempt to present such information in an intellectual manner when it's obvious that it's far from the truth.

I don't like to rubbish commentary from Goldbugs but this recent publication just seems to blatently wrong sided.

This is they type of misinformation one would expect to see published by JPM.(:-))))

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Fiat vs Gold -- Sharefin, 00:01:22 09/21/02 Sat

Federal Reserve Board Abolition Act

Go to this website THOMAS -- U.S. Congress on the Internet and type in " HR5356 " and it will bring up Ron Paul's bill.

107th CONGRESS

2d Session

H. R. 5356

To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 10, 2002
Mr. PAUL introduced the following bill; which was referred to the Committee on Financial Services


--------------------------------------------------------------------------------

A BILL

To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Federal Reserve Board Abolition Act'.
SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.
(a) IN GENERAL- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.
(b) REPEAL OF FEDERAL RESERVE ACT- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.
(c) DISPOSITION OF AFFAIRS-
(1) MANAGEMENT DURING DISSOLUTION PERIOD- During the 1-year period referred to in subsection (a), the Chairman of the Board of Governors of the Federal Reserve System--
(A) shall, for the sole purpose of winding up the affairs of the Board of Governors of the Federal Reserve System and the Federal reserve banks--
(i) manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and
(ii) manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and
(B) may take such other action as may be necessary, subject to the approval of the Secretary of the Treasury, to wind up the affairs of the Board and the Federal reserve banks.
(2) LIQUIDATION OF ASSETS-
(A) IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.
(B) TRANSFER TO TREASURY- After satisfying all claims against the Board and any Federal reserve bank which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.
(3) ASSUMPTION OF LIABILITIES- All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.
(d) REPORT- At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.

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Gold -- Sharefin, 23:52:31 09/20/02 Fri

Next Monday & Tuesday, 9/23 & 9/24 The Tom O'Brien Show (TFNN) will be co-hosting the NY Gold Conference with Jim Sinclair. They'll have on for interviews & commentary all your favorites, Bob Chapman, Jay Taylor, the Aden sisters, plus many others. The show will be broadcast live from 3-6PM. There will be charts available at the TFNN website so you can follow the action!

TFNN Website

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Fiat vs Gold -- Sharefin, 23:50:31 09/20/02 Fri

No link for this one
----------------------
Transcript: Louis Rucksack's Week on Wall Street

Mr. Rucksack: Good evening, Welcome back.
Normally at this time in the show, I lamely try to tie in the week's
stock market performance with our pop culture or politics, name
dropping Madonna, Tiger, or W. as often as possible. But tonight
I'll dispense with the yadda yadda yadda and get to the point.

The Market decimated your portfolios again this week just past. It
was a surprise to all of us on tonight's show, as none of us last
week told anyone to sell a darn thing. According to our minutes, we
expressed concern about further volatility, but hey, during what show
in the past 25 years have we not said that? So we let you, our
audience, down once again. There, I put the puns aside, and told it
like it is. I hope my panelists take this queue and tell us what
they really think, and not just what gets them invited back.

Frank Capitalisto, you manage about 10 gazillion dollars of Other
People's Money. What are you throwing it at this week?

Frank. Capitalisto: Well, Lou, while I manage funds worth
about 10 gazillion dollars, we are only in about 1% cash right now,
so we're basically churning the account, selling some losers (which
means any of our stocks; techs, cyclicals, utilities, transports) and
buying more of the same. Sort of a re-balancing. Keeps us off of
the Yahoo chat rooms during working hours.

Lou: Any of those stocks have names?

Frank: No.

Lou: Okayyyyy……..So you think this might be the low for the market?

Frank: That's just your wishful thinking, Lou. Personally, I
think we have much farther to fall in the months and years ahead.
When the valuations return to some normalcy, then I'll repeat the
obvious cliches about in it for the long haul. Really, Lou, you
ought to read a stock market book one of these days. How about Mike
Alexander's Stock Cycles--"Why money markets will outperform stocks
for the next 10 years." (I don't know how to underline --editor)

Lou: Who has time to read? Well, with your negative outlook, why
not SELL some stock, and raise cash?

Frank: Oh, in my personal account, I'm 100 % cash. Bought some
puts, actually. But with OPM, it's just business as usual.

Lou: Well, let's turn to our old friend, Randall Carter. He's a
mellow fellow, always pours oil on burning waters. Randall, do you
share Frank's pessimism?

Randall: That's Carter Randall. Mr. Randall, to you, Lou. And
another thing. Know what I really think? Gold, Precious Metals.
I've been checking out the gold bug websites, and have learned there
is a secret Government Plot, led by Central Bankers and their ilk,
manipulating the price of gold, currencies, interest rates, you-name-
it. Maybe you're in on it too!

Lou: Lord knows I'm not bright enough for that stuff, heh, heh.
But I'm surprised you'd be interested in such things. But back to
topic: stock market. Like stocks?

Carter: In your dreams!

Lou: Bonds! What do you think of Bonds here?

Carter: Oh, definitely one of greatest hitters in baseball. Shows
good team spirit in the pennant race, too.

Lou: No, not Barry. You know, Government and Corporate issues.

Frank: Losers. Sir Printsalot has crippled interest rates, so who
wants to save or lend money at zero real percent? Tie up your dough
for years for nothing? What do you think will happen if the economy
should regain its normal strength?

Lou: I dunno, I only ask the questions, never answer them unless it
is a patently flippant answer involving a pun. What would happen?

Frank: A normal growing economy could double the rates, you know,
back to where they were during the 90's, that era we all profess to
like. Doubling the rates would cut your bond values in half. Half I
say!

Lou: I never did understand how that works……..but not to worry, the
economy won't regain its normal strength, it will stagnate for
years. Well, let's move on. I've invited Gail DueBack to come back
again. You may recall that she was banished as a regular for being a
bit too early in her call for a bear market. Saving her clients from
the top of the mania was just too unforgivable. But my producer,
whoever she is, brought her back tonight anyway. Gail, is it payback
time for me, or what?

Gail: Lou, just admit you were wrong for the past 114 weeks on
your weekly show.

Lou: Okay, okay, I blew it. But it's only money, isn't it? Your
family still loves you, don't they? Well, they probably didn't
before your blew the wad. Gail, what's in store for investors in the
weeks ahead?

Gail: Probably more pain and agony. My special indicator shows a
30% loss on the S&P 500 by year end.

Lou: What indicator is that? We'd like to know, since it has been
bang on for 2 1/2 years!

Gail: It's the inverse Elaine Garzarelli indicator. I just take
her prediction, and go the opposite way.

Lou: She's our special guest tonight, so you'd better sharpen those
claws! I think I see a catfight coming! Well, before we meet our
special guest, let's just here from one more of our old, discarded
but right-on panelists: Mr. Jim Grant, now head of Agora Publishing,
and the one cool head that used eschew (gesundheit!) the stock
mania. Jim, are you bearish as ever?

Jim: What do you think, Curly Locks?

Lou: Uh, I'll take that as a yes. Well, it looks like we're out of
time once again. Nice to have our panelists back again, and smart
money is on Big Hair Garzarelli backstage in five minutes. So until
next week, this is Lou Rucksack, wishing all of you the best of good
buys.

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Kitco and GoldMoney Establish Arrangement -- Sharefin, 23:33:04 09/20/02 Fri

Kevin

Though physical gold & the holding of such is a desirable aspect of being a goldbug I serious doubt that I would ever be convinced to part with my stored up wealth for some of your cyber form of gold.

I believe that the emergence of trading gold in a cyber world is little different from trading paper gold and as such is open to all sorts of shenanigans.

In just the last few years since E-Gold evolved there's been numerous attempts to relieve such cyber holders of their assets as hacking code is simple & the protection of cyber acounts is open to such attempts.

Also there has been a dearth of cyber-games, MLM's
& other such pyramiding concepts that have evolved from such cyber assets and many websites have opened up in the attempt to relive others of their hard earned cash.

In reality I think that cyber gold & it's conitations are similar in nature to banks & their interests in ones personal assets - everyone seeking to eek out some percentage of anothers wealth.

As such it must be hard to convince knowledgeable goldbugs to the merrits of swapping physical gold in ones possession to cyber gold that's held in someone elses possession and for which they ask a percentage of profits.

Though the world constantly elvolves & we now have moved to a newer cyber world I can hardly recommend your services to true goldbugs.

The wisdom of holding ones wealth in the form of physical is abrogated once such values are transformed to a cyber nature.

At least this is my opinon from what I have seen so far.
Buyer beware!!!
Nick

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A1 -- Sharefin, 23:16:50 09/20/02 Fri

I log & plot the Comex stockpiles & you can see them ploted here:

Comex Gold
Comex Silver

In the overall picture the numbers you mention though seeming large appear as typical gyrations.

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Warehouse stocks update -- Al, 09:40:23 09/20/02 Fri

As of close of business on 9/19/02 433,053 ounces of silver were added to the warehouse stock ostensibly to replace the 1,013,000 removed during the period 9/17 - 9/18.
Total inventory as of 9/19 is 107,932,792.

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Warehouse stocks -- Al, 09:30:39 09/19/02 Thu

I keep the NY mercantile silver warehouse stock on my radar.
Apparently, on close of 9/17 201,000 ounces were removed, on 9/18 (yesterday) 812,000 ounces were removed leaving the total on hand as 107+ million ounces. Where did over 1 million ounces go? Central fund of Canada? I thought they got filled a few months ago. If someone can shed some light on this it would be instructive. 1 million ounces is aprox
31,250 kilos.

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Kitco and GoldMoney Establish Arrangement -- Hayek, 08:53:12 09/19/02 Thu

For Immediate Release

Media Contact
Kevin A. Mercuri
RLM PR
212-741-5106 ext 28
Kevin@rlmpr.com


Kitco and GoldMoney Establish Arrangement
for Online Gold Transactions

Consumers Given Means to Buy & Sell Gold Online

New York, NY - September 17, 2002 - Rectifying a long-ignored deficiency in the precious metals transaction infrastructure, two leading precious metal operators today announced an alliance to create the means to buy & sell gold online. In doing so, Kitco, a precious metals retailer and GoldMoney, an asset-based online transaction system, are implementing an entirely new way for individuals and companies to buy & sell gold easily and inexpensively with the assurances of safe and secure allocated storage for their precious metals.

Prior to the alliance, gold purchases often required expensive shipping to the buyer because insured storage of gold was not practical or possible at low cost in many instances. Physical ownership of gold often involves complex and costly steps that are largely prohibitive for many consumers. The GoldMoney - Kitco alliance will enable anyone to purchase physical gold online and store their gold in a high-security facility in Great Britain.

“Kitco’s proficiency in retailing precious metals, combined with GoldMoney’s infrastructure will simplify gold ownership,” said James Turk, founder and managing director for GoldMoney. “Consumers will finally enjoy inexpensive storage with an easy way to buy gold. It’s an important break-through, particularly now that gold ownership is again proving to be a wise decision.”

By creating this online way to buy & sell gold, GoldMoney and Kitco are letting consumers trade gold at real-time prices. Formerly, the lack of real-time trading often meant buy orders were subject to shifts in valuation until execution. In addition, consumers will have the unprecedented option of storing their purchase as digital gold currency (through GoldMoney) or in physical gold through Kitco’s streamlined coin and bullion retail operation. Purchase, storage and exchange are thus efficient and economical.

Recognized as a leading retailer of precious metals, Kitco offers a complete line of highest-quality bullion products as well as refining and trading services for industrial users of precious metals. With more than 8 million monthly visitors, www.kitco.com is ranked as one of the world’s most popular sites for information on precious metals.

GoldMoney, inventor and patent holder of the asset-based online transaction process available from www.goldmoney.com, allows consumers to conduct limitless transactions over the Web using gold - a time-honored asset - instead of fiat currency.

“This is a perfect example of vertical integration in response to market demands,” said Kitco president, Bart Kitner. “Kitco's website attracts a large and diverse clientele with an avowed interest in precious metals. By integrating GoldMoney into our system, thousands of GoldMoney users will have a simple way to buy GoldGrams, using US or Canadian dollars.”

Because GoldMoney is an established form of online currency, consumers will also be able to shop online using the value of the gold in their account. A growing number of online merchants and other entities accept GoldMoney payments due to its secure, irreversible, and instantaneous nature.


###




GoldMoney is Digital Gold Currency - gold in digital form that can be spent and transferred electronically. By converting the world’s oldest money into a new and much-needed digital currency, GoldMoney allows consumers, merchants and consumers to avoid the intrusion and expense of credit cards as well as the hassle of using conventional fiat currencies online. GoldMoney founder, James Turk is the creator and patent holder to the asset-based online transaction system. GoldMoney services can be accessed at www.GoldMoney.com

Kitco is recognized throughout the globe as a leading retailer of precious metals for small and large consumers as well as the precious metals industry. Kitco provides highest quality bullion bars and coins for consumers, refining services for the jewelry manufacturing industry, and mill products. Kitco’s website, www.Kitco.com is a nexus of the precious metals industry providing real-time pricing, industry news and a precious metals purchasing platform.

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Gold -- Sharefin, 05:13:55 09/19/02 Thu

Gold in uncertain times

Speculation amongst market analysts and economists remains rife regarding the impact military conflict would have on the international gold price.

Local economists are sceptical about a significant shift in the gold price, though they admit a slight rise in bullion prices is possible should war break out.

The overall feeling is, however, that the rise will not be very significant and other socio-economic factors are expected to weigh equally on the yellow metal’s trading value.

“In times of uncertainty - not only war, but also the state of international financial markets - people move towards the gold market,” he said.

“Should war break out, however, gold could find some support, as it did 20 years ago when there were problems in the Middle East and the price reached $800 an ounce”.

Roger Baxter, an economist from the South African Chamber of Mines, said a ‘multiplicity of factors’ can be expected to impact on the gold price.

He said the decreasing flow of gold from central bank, together with a decline in new-mine supply, a move away from hedging and a weaker world economy would most likely push bullion prices higher.

“It must be remembered that political turbulence often leads to economic turbulence, but there are a number of factors that can affect the gold price,” said Baxter.

“The war will certainly have a bearing as wars often knock currencies and developing market economies”.

---

Gold -- Sharefin, 05:09:47 09/19/02 Thu

Gold climbs on U.S-Iraq tension, falling stocks

"With tensions in the Middle East simmering and the gold entering a period of typically strong seasonal physical demand the outlook for the yellow metal is positive and a test of resistance at $325 is not an unreasonable near term target," said Standard Bank London in a daily report.

"Gold seems to have a solid base as we approach the last quarter of the year," it said.

~~
The market shrugged off news that German conservative Edmund Stoiber, seeking to oust Chancellor Gerhard Schroeder in elections on Sunday, ruled out selling Bundesbank gold reserves to finance the country's budget deficit.

---

Gold -- Sharefin, 05:07:51 09/19/02 Thu

China gold demand slides, worse than world trend-WGC

Gold consumption in Greater China tumbled by nearly 16 percent in the first half of the year due chiefly to a sharp drop in gold jewellery sales in Taiwan, the World Gold Council said on Tuesday

---

Gold -- Sharefin, 05:05:23 09/19/02 Thu

Is the Gold Standard History?

Let's just say that the existence of a central bank introduces an occasion of sin for the government. That is why under the best gold standard, there would be no central bank, gold coins would circulate as freely as their substitutes, and rules against fraud and theft would prohibit banks from pyramiding credit on top of demand deposits. So long as we are constructing the perfect system, all coinage would be private. Banks would be treated as businesses, no special privileges, no promises of bailout, no subsidized insurance, and no connection to government at any level.

~~

As for financial markets, events this year have again underscored the underlying obsession, if you want to call it that, that the world's financial markets have with gold. It is not a coincidence that gold-mining stocks were the best performing during the bust period of this business cycle. And earlier this summer, we saw spot prices of gold begin to move very rapidly in response to the growing perception that the financial sector was far from bottoming out. Try as it might, the establishment just can’t seem to crush the perception that gold is more reliable that government’s paper money.

Indeed, gold continues to be seen as a standard of soundness, as the commodity to flee to in times of emergency, as the last store of value that can be counted on. Neither are these emergencies unknown in the modern world. In Latin America this summer, we witnessed governments prohibiting withdrawals from banks during financial crises, just as we saw in the early days of the Great Depression in the United States. Gold continues to be perceived as a safe haven from the wiles of political opportunism and violence.

~~~

Once having read Mises or Rothbard or any number of great monetary theorists, you begin to realize that understanding the monetary regime is the key that unlocks the mysteries of political control in our time. The Fed was created not to scientifically manage the economy - as the journals claimed at the time - but because it met the institutional needs of both the government and the banking industry. The government sought a means of finance that didn't depend on taxation, and the banking industry sought what Rothbard called a cartelization device. That is to say, the banking industry was seeking some way to prevent competitive pressures between banks from limiting their ability to expand credit.

Well, the central bank fit the bill. A central bank managing a currency that is not tied to anything real fits the bill even better. If a little power to inflate is good for the government and its connected banking and financial interests, a lot of power to inflate is even better. For this reason, it was very likely that the gold standard could not have survived the creation of a central bank, and, for the same reason, the creation of a new gold standard will have to do away with the central bank that would always threaten bring it down.

The power to create money is the most ominous power ever bestowed on any human being. This power is rightly criminalized when it is exercised by private individuals, and even today, everyone knows why counterfeiting is wrong and knavish. Far fewer are aware of the role of the federal government, the Fed, and the fiat dollar in making possible the largest counterfeiting operation in human history, which is called the world dollar standard. Fewer still understand the connection between this officially sanctioned criminality and the business cycle, the rise and collapse of the stock market, and the continued erosion of the value of the dollar.

In fact, I would venture to guess that a sizeable percentage of even educated adults would be astounded to discover that the Federal Reserve does more than manage the nation's money accounts, that, in fact, its main activity consists in actually creating money that distorts production and creates inflation and the business cycle. In fact, I would go further to suggest that many educated adults believe that gold continues to serve as the ultimate backing of our monetary system, and would be astonished to discover that our money is backed by nothing but more of itself.

We have our work cut out for us, to be sure, mainly at the educational level. We must continue to state the obvious at every opportunity, that the fiat system is exactly what it is, a system of paper money backed by nothing of real value. We must continue to point out that because of this, our economic system is not depression proof, but rather highly vulnerable to complete meltdown. We must continue to draw attention to the only long-term solution: a complete separation of money and state based on the commodity that the market has always chosen as money, namely, gold.

~~~

Back in 1997-98 you were considered a crabby kook, behind the times, to warn that the bull market in tech stocks could not last. But economic law intervened, and fashions changed. Back in those days, too, had you suggested that the business cycle had not been repealed, you would have been dismissed out of hand. But economic law intervened.

In the same way, there will come a time when the current money and banking system, living off credit created by a fiat money system, will be stretched beyond the limit. When it happens, attitudes will turn on a dime. No advocate of the gold standard looks forward to the crisis nor to the human suffering that will come with it. We do, however, look forward to the reassertion of economic law in the field of money and banking. When it becomes incredibly obvious that something drastic must replace the current system, new attention will be paid to the voices that have long cast aspersions on the current system and called for a restoration of sound money.

---

Gold -- Sharefin, 03:51:36 09/19/02 Thu

Hedging defense - Dr. Murenbeeld Replies

---

Gold -- Sharefin, 03:37:45 09/19/02 Thu

INTERVIEW: Bobby Godsell: Chairman, AngloGold

---

Gold -- Sharefin, 03:34:21 09/19/02 Thu

Barrick's move to cut hedging a sign of the times

Investors drive agenda

You know the tide has turned when Barrick Gold Corp., the world's biggest hedging proponent, starts paring down its hedge book.

And you know there is a lot of demand among investors for more information on the arcane world of hedging when a major Bay Street brokerage produces a long report on the subject and announces a road show conference on the subject in Toronto and Montreal.

Hedging strategies that looked great when gold was falling are now feared to be trouble if bullion keeps going up.

Skittish investors are reluctant to invest in companies that employ complicated off-balance sheet hedging strategies. For that reason alone, National Bank Financial mining analyst Tanya Jakusconek said in a report yesterday that Barrick could make the market a lot more receptive by simplifying its hedge book by eliminating variable price sales contracts and its bond portfolio.

The largest proponents of hedging, Barrick and Placer Dome Inc., have seen their share prices miss triple-digit returns enjoyed in 2002 by less hedge-dependent producers, including Kinross Gold, Bema Gold Inc. and Glamis Gold Inc.

Shares of Barrick are up a measly 6% in 2002, Placer is down 6% while Bema is up 330% and Kinross is up 198%.

Barrick has said in recent months that by 2003 it would reduce by one-third the amount of gold sold into forward, fixed-price contracts, and yesterday said it would not raise this amount in the future.

It's little wonder investors are leery of hedge books, which are made up of various complex instruments including fixed forward contracts, spot deferreds and variable contracts where interest rates and lease rates are floating.

NBF's Ms. Jakusconek noted in her dense report on hedging that hedge books are generally the largest they have been during the past 10 years and are at their lowest realized prices.

Barrick, Placer and Newmont have an average of 18% of proven and probable reserves hedged, or 2.7 years of production at a realized average price of US$354 an ounce.

Ms. Jakusconek says investors believe higher gold prices will trigger margin calls and counterparty credit issues if gold adds to an already 13% gain from its US$278-an-ounce low.

Yet Barrick has said it will not suffer from higher gold prices because it can defer contracts and instead sell into the spot gold market -- if gold rises above its realized price of US$340 -- while no counterparty can ask for early delivery of gold or terminate contracts, and margin calls will not be triggered at any gold price.

Ms. Jakusconek says Barrick has been able to defer contracts during the past 15 years, but that this practice would become more difficult if central banks stopped lending gold -- a trend that has already started -- or Barrick had trouble producing gold or was in default of its financial covenants.

National Bank said a US$36 per ounce rise in gold would erode US$1-billion from Barrick's hedge book, although the price rise for its unhedged 61 million ounces would boost the book's value by US$2.2-billion.

---

Fiat -- Sharefin, 03:29:40 09/19/02 Thu

New Monsters Inc. on Wall Street

Credit risk, derivatives in J.P. Morgan horror tale

"Not pretty," Murphy tells me from his Texas office. The New York bank has, by some estimates, more than $20 trillion of customized and other derivatives on its books. The Office of the Comptroller of the Currency lists J.P. Morgan Chase as the largest holder of gold derivatives, such as deferred-sale contracts and other hedged instruments, swaps and futures-linked devices that gold companies and central banks used to generate extra income during gold's descent in the decade of the '90s.

The faltering bank is regarded as one of the largest dealers in the lending of gold, a practice that generated steady profits when gold prices were (until this year) falling and interest rates were higher than they are now.

---

Fiat -- Sharefin, 09:01:31 09/18/02 Wed

BOJ to buy stocks from banks, credibility queried

Japan's central bank, moving to allay fears of a financial crisis, announced unprecedented plans on Wednesday to buy shares directly from banks in a surprise step that drove up stock prices but put its credibility on the line.

Sailing into uncharted waters for a central bank, the Bank of Japan said the plan was aimed at preventing market volatility and banking system instability from feeding on each other.

"The central bank must consider measures that will help banks reduce risks from their shareholdings," Bank of Japan Governor Masaru Hayami told a news conference.

The move -- described by ratings agency Standard and Poor's as "shocking" -- follows a fall in the Nikkei share average to 19-year lows this month, raising concerns about a financial crisis ahead of half-year book-closing on September 30.

---

Gold -- Sharefin, 23:32:57 09/17/02 Tue

Rivers ran with gold three billion years ago

Three billion years ago there was no life on land and no oxygen in the atmosphere. But the rivers ran with gold.

The world's biggest gold deposits washed up at their South African resting place in little bits, say geologists - possibly settling a century-old debate. Understanding the origins of the Witwatersrand Basin deposits could help prospectors to recognize the rock features that point to gold.

"The gold was transported into the basin by streams and rivers," says geologist Jason Kirk of the University of Arizona, Tucson. The gold was formed about three billion years ago, his team has found1. But the rocks on top are about 250 million years younger.

The arguments about how South Africa's Witwatersrand Basin became laden with gold have raged ever since the deposits were discovered. More gold has come from these 7,000 square kilometres than from any continent - about 50,000 tonnes over 120 years, nearly half of all the gold ever mined.

---

Gold -- Sharefin, 23:31:20 09/17/02 Tue

Gold fund glitters in dull market

All that glitters may not be gold, but the UK's only specialist gold fund has certainly enjoyed a glittering year.

Merrill Lynch Gold & General has handed its growing army of investors a more then useful return of 76.7 per cent over the last 12 months, trouncing the rest of the UK's 1,750 unit trusts and oeics, which have mustered an average 12-month return of minus 13.1 per cent.

Clearly the Merrill fund's strong run may falter if the global gold price were to drop.

But with international tension mounting amid the increasing likelihood of a US-led attack on Iraq, the precious metal is once again fulfilling its traditional role as a safe haven: from $276 an ounce on January 1, gold is now fetching $322 an ounce, a rise of 17 per cent.

Graham Birch, manager of the Merrill fund since 1999, bristles at the idea of the ý184m fund being a safe option in troubled times, however.

Speculation

"Gold bullion is a safe haven, gold equities are a geared play on gold and are actually a speculation," he says.

"Most of the people who buy our fund are not buying it as a safe haven, they are buying it because they believe they are going to make some money out of it."

Merrill Gold & General invests in the shares of gold producers, sprinkled with a handful of platinum, diamond and silver miners. Mr Birch argues that these gold equities are three-to-five times geared plays on the gold bullion price.

Perhaps surprisingly, the manager does not explicitly attempt to forecast the future price of gold in constructing his portfolio. But he does have a view.

"My private view that it will probably go a lot higher. The gold price today is by no means excessively high. It is below the average of the last 20 years. I think we are in for a period of prolonged uncertainty," he says.

---

Gold -- Sharefin, 23:25:40 09/17/02 Tue

Gold mine production levels unsustainable - GFMS

Current gold mine production levels may not be sustainable because of depleted reserves at mature North American mine operations and a fall in new mines due on stream, a leading mine research group said on Monday.

"Gold Fields Mineral Services (GFMS) now believe that the world's current mine production levels may not be sustainable," the company said.

"Initial estimates for global gold mine production point to a significant fall during the first half of 2002...one of the major causes is that output tumbled in Indonesia," London-based GFMS said in a statement.

Lower grades at mining operations in the US state of Nevada were expected to have left output "considerably lower" year-on-year to leave total US output at levels last recorded a decade ago.

GFMS gave no figures on mine output levels, but said it would finalise and publish details of its survey at a presentation of its global gold survey on September 24.

GFMS survey would support research by Toronto-based mining investment banking and research firm Beacon Group Advisors, which in April forecast global gold output falling this year for the first time in two decades, reflecting years of low prices and slashed exploration budgets.

Beacon estimated that world supply of mined gold may could plummet by nearly 30% by 2010 unless bullion prices rally and prompt miners to bring untapped deposits on stream.

Beacon Group's modeling showed global output below 60-million ounces by 2010, down from current levels around 83-million, if bullion prices averaged $275.

Even projections based on a price of $300 and incorporating planned new mine developments showed output falling sharply after 2006 to post a 22% drop from current levels.

---

Gold -- Sharefin, 23:21:10 09/17/02 Tue

Gold's double-edged sword

The very factors that have propelled global gold equities to new heights this year are threatening to shake the age-old foundation of world gold markets - Indian gold demand. Figures released today by the World Gold Council show the country's jewellery demand for the second quarter struggling to adapt to a protracted period of dollar gold price strength. Global investment demand, meanwhile, has remained worryingly static.

---

Gold -- Sharefin, 23:16:17 09/17/02 Tue

Barrick's tough sell on new projects

Barrick today unveiled further details of its development pipeline and hedging program, but the consensus view is that it does not change present valuations.

---

Gold -- Sharefin, 07:16:47 09/17/02 Tue

Barrick Gold sets bold growth plan

Barrick plans to reduce its forward sales position by one-third, to 12 million ounces from 17.9 million, by end of 2003. This would equate to 15 percent of the company's current gold reserves as compared to 22 percent today.

"We are further reducing our hedge position for three main reasons: interest rates are at 40-year lows, leading to lower forward premiums; Barrick has never been stronger financially; and the outlook for gold prices is positive," said Jamie Sokalsky, chief financial officer.

---

Gold -- Sharefin, 07:14:55 09/17/02 Tue

Political and Economic Worries Support Gold Investment in the U.S.

Jewelry Sales hold steady despite slowing demand for luxury goods generally

A report published by the World Gold Council today said that gold off take in the U.S. rose 2.8% to 70.2 tonnes year-on-year in the second quarter with a 41% surge in investment demand to 4.1 tonnes - up from 2.9 tonnes.

The report - Gold Demand Trends, published quarterly by the Council - said that the rising gold price, along with concerns over corporate government, the global political scenario and the still shaky economy, underpinned interest in investment gold in the United States. Moreover, demand for gold jewelry remained surprisingly stable- even increasing slightly to 66.1 tonnes - up from 65.4 tonnes despite hardening consumer sentiment caused by collapsing equity markets and geo-political tensions. Although purchases were concentrated in lower cost items demand held despite slowing sales of luxury goods generally. The report noted that if economic recovery in the U.S. becomes more firmly based, demand should improve although growth in the next few months is expected to be modest.

---

Gold -- Sharefin, 06:46:41 09/17/02 Tue

TWO ADDITIONS TO THE INVESTMENT TEAM AT THE WORLD GOLD COUNCIL

The Executive Committee of the World Gold Council is pleased to announce the appointment of two new members of the senior management team. Stuart Thomas is Managing Director of its newly formed subsidiary, World Gold Trust Services LLC and based in the World Gold Council's New York office he will be responsible for developing a new gold investment product. Simon Village will be Managing Director Investment Services based in London with a similar remit to promote gold investment products globally on behalf of the World Gold Council.

Stuart Thomas graduated from Fairleigh Dickinson University where he majored in Economics and Finance. He joins the World Gold Council from Morgan Stanley in New York where he was First Vice President, Director, Equity Capital Markets Sales and Solutions. Previously Stuart was with Merrill Lynch in New York for 9 years.

Simon Village graduated as a Mining Engineer from the Camborne School of Mines, UK, and gained practical knowledge of the industry working for Shell Minerals and the Anglo American Group. For the past 8 years Simon has been with HSBC in South Africa and London. Simon was responsible for Global Mining Research for the HSBC Investment Banking Group and most recently repositioned HSBC's Institutional Securities business in South Africa.

The creation of innovative gold-backed financial products will increase interest in gold as an investment. This is one initiative of several that will reinvigorate the Council under the leadership of Chairman, Chris Thompson, and the recently appointed Jim Burton as the World Gold Council's Chief Executive Officer.

---

Gold -- Sharefin, 06:43:50 09/17/02 Tue

Losing shine? Gold demand dips by over 40% in Q2

Rising prices, weak rural income due to poor monsoon and a less buoyant economy continued to hurt gold demand in the country during the second quarter of 2002 (April-May-June) and it declined by 41 per cent compared to a year earlier.

---

Gold -- Sharefin, 06:38:44 09/17/02 Tue

Stocks, Dollar Rise; Oil Falls as Iraq Says to Admit Inspectors

Stocks and the dollar rose after Iraq agreed to admit United Nations weapons inspectors, easing concern the U.S. may invade. Oil, bonds and gold declined.

---

Gold -- Sharefin, 06:36:26 09/17/02 Tue

No link or story on this one yet.

~~~~~
BARRICK TO CUT FORWARD GOLD SALES POSITION BY ONE-THIRD

---

Gold -- Sharefin, 06:33:18 09/17/02 Tue

Newmont Mining to end hedging by February

Australian gold producer Normandy, owned by world number one gold miner Newmont Mining Corp , on Tuesday said Newmont would eliminate its hedge book by February next year.
"Newmont has completed a restructure of its hedge book, reducing total hedging by 1.1 million ounces since 31 December 2001, and has implemented a new hedging policy that will result in elimination of the Company's remaining hedge book of 300,000 ounces by February 2003," the firm said in a statement released in Australia.

Newmont had already committed itself to accelerate the unravelling of millions of ounces of gold pre-sold at fixed prices.

The mining house had already extinguished some two million ounces of a total 10 million ounces inherited with the takeover of Normandy in February this year.

Newmont, which forecast gold production of over seven million ounces this year, is among a growing legion of big miners with an aversion to hedging -- the practice of selling yet-unmined nuggets at fixed prices.

Newmont has criticised hedging as hurting the gold price by erecting a false ceiling on upward price movements.

---

Gold -- Sharefin, 06:27:57 09/17/02 Tue

Gold prices stunt Q2 demand

Gold demand in the second (April-June) quarter of 2002 fell 14.7 percent year-on-year to 729 tonnes owing to falling consumer confidence and a two-and-a-half year high for the spot price of bullion, the World Gold Council (WGC) has said. The WGC said political uncertainties and economic worries would underpin investment demand in the near future. "Unless the gold price rises again then jewellery demand should start to recover; the physical market now seems to have adapted to prices in excess of $300 per ounce," the council said. It was commenting in its quarterly report Gold Demand Trends.

---

Gold -- Sharefin, 06:25:45 09/17/02 Tue

Barrick unveils development plan

Tuesday announced a $2-billion (U.S.) mine development program expected to double profits by 2006 - a move the gold miner described as one of the biggest programs of its kind in the sector.

The five-year plan calls for an average two million ounces of annual gold production in the first 10 years at an expected cash cost of $125 per ounce. That's 29 per cent lower than the current production base, the company said in a statement.

---

Gold -- Sharefin, 06:22:16 09/17/02 Tue

Speculation Barrick may make move on Newcrest

Shares of Australian gold producer rise nearly 8% over two days

Investors in Australia are gambling Barrick Gold Corp. is ready to target one of that country's largest gold producers, Newcrest Mining Corp.

For its part, Barrick yesterday refused to comment on a Sept. 12 report published on theminingweb.com, an African-based Internet site.

---

Old Gossip -- Sharefin, 06:07:27 09/17/02 Tue

This is the Dr. Beter AUDIO LETTER(R) 1980

Administrations come and go, my friends, but the more they
legislate, the more the country goes to the dogs. Millions of
Americans are out of work, but inflation refuses to quit.
Interest rates are heading up again, so say "Good-bye" to that
new home. Our auto industry is on the ropes, our cities are
decaying, our armed forces are falling apart, and at the center
of it all our dollar is shrinking out of existence. The dollar
is no longer "good as gold" because our gold is gone; and as long
as it stays gone, all the campaign promises in the world cannot
save the United States economy. The forces who stole our gold
are bringing down America's economy, and now they are using our
own gold to bring down war around our heads.

My friends, it's time to lift our eyes from idle campaign
promises to cast our vote for America before it is too late.
It's time for us, the American people, to use the gold weapon
ourselves. It's time for us to vote for the TRUTH by bringing
about a public investigation of the FORT KNOX GOLD SCANDAL
because only in that way can we hope to save our economy from
utter ruin, and only in that way can we seize a weapon big enough
to stop those who are dragging us all into the insanity of
NUCLEAR WAR ONE.

~~~
Ever since 1914, war after war has been fought over oil.
Governments have been destroyed, others created, and still others
subverted; and whenever there is war for oil, gold is always the
trigger. Gold is such an important weapon of war that in early
1968 the Joint Chiefs of Staff became very alarmed over the
depletion of America's gold supply. They visited their then
President Lyndon Johnson in the White House. In an angry
confrontation they demanded that Johnson not reduce the gold
stock still remaining because it was needed for purposes of war.

The Rockefeller interests, now under the control of John J.
McCloy and associates, arranged earlier this year for eight
billion dollars ($8,000,000,000)--that's eight thousand million
dollars--in gold to be paid to the leader of Iraq, Saddam
Hussein. A very special private underground warehouse in Zurich
was used in this transfer of gold. This gold was an outright
bribe. It was to persuade Iraq to attack Iran. Eight billion
dollars, my friends, is a lot of money, but it was a cheap price
for the Rockefeller oil cartel, and for two reasons:

First, the gold which was used to bribe Iraq to start the war
was part of the gold which was stolen from you and me! The bulk
of the gold taken from America's stockpiles was flown to Europe
on multinational corporate jets. So, my friends, that $8-billion
in gold did not cost the oil companies anything except some jet
fuel, but it cost you and me part of our monetary gold, and it
has been used to start a war for which you and I will pay even
more.

Eight billion dollars in gold was a cheap price for the oil
companies for another reason too. If their plans are successful,
the Rockefeller oil group will get back complete control over
Iran's oil and other natural resources, and they won't have to
pay those untold billions in oil royalties to their new Iranian
lackeys.

---

Silver -- Sharefin, 22:18:06 09/16/02 Mon

Silver swindle!

Earlier this month it came to my attention that hallmarked Sterling silver jewellery (925 fineness) being hawked at major US retail outlets and even prominent jewellers is probably little better than stainless steel.
Newsletter publisher Bob Chapman ran a simple magnetic test on Sterling products in Texas earlier this month and reported that nearly everything clung to his magnet for dear life. Sterling silver doesn't do that. He reported the fraud to the managements of the stores who promised to take action, but were still selling counterfeit stuff days later. Evidently the stores think this is not a problem or their communication is really that bad. They're going to get an expensive surprise.

To my wife's misguided delight, I suggested we browse the wares at the local jewellery stores in one of those cheerless, windowless shrines to consumerism (Quaker Bridge Mall, Princeton). Suffice it to say she was less than impressed at my interest in silver and less so that it was for its magnetic rather than aesthetic qualities. In short, most of the stuff was magnetic.

Given the evidence pouring in from around the country, this impacts tens of millions of ounces of silver. Duped customers are going to want their money back or the real thing. The stores, fearing litigation, will swiftly turn on their suppliers, who will turn on the manufacturers to get back the money or 925 silver. Either way, it looks very positive for silver producers and anyone else long silver because this is not a problem to be solved quietly. However, the danger is that a large chunk of people will be put off buying jewellery altogether since there is no way to be sure you're getting what is promised.

---

Gold -- Sharefin, 21:18:40 09/16/02 Mon

US-Iraq war factor already priced in

An Iraq-US war in its own right would not drive the gold price skyhigh, according to a leading global gold analyst. The talk of a solo or UN-sanctioned US attack against Iraq has been in the news for a couple of months now, and many market observers felt a war premium had already been built into the gold price.

Recent history showed war in isolation was not the key to movement in gold prices. "It is the impact of war, if any, on the major macro-economic variable that will be the crucial determinant for gold," said associate director of metals and mining at Macquarie Bank, Kamal Naqvi.

---

a bullish tidbit -- Al, 19:48:47 09/16/02 Mon

I was at the bullion bank today to buy another silver bar.
I selected my usual 100oz poured JM and elected to retire 490 dollars from my checking acount to set another bar free.
Anyway, the girl was chatty and she volunteered some interesting information, she told me that this morning a gentleman had come in to redeem a 100 oz certificate that he had purchased in 1980, for 40 someodd dollars an ounce.
Of course at todays prices he got just better than 10 cents on the dollar. This reminds me of a story from 1980 where a guy went down to sell all his silver in the forty dollar range and was bemused by all of the activity at the silver wicket, he remarked to someone in line that he guessed he wasnt the only one who was selling at such a high price.
"selling, buddy, we're here to buy silver"
Peace.

---

ChartsRus -- Sharefin, 09:55:35 09/16/02 Mon

Charts Online

Also a few new chart series to look at.
CEF
Nikkei/Gold ratio


Gold FIBO ready to break through.

Dow FIBO breaking down.

---

Gold -- Sharefin, 00:31:45 09/16/02 Mon

They won't ring a bell at the bottom

Finally, I might also cite the gold market as an example of how a bottoming process works. In a bear market for two decades, it appears that gold made its final low at around $250 or $260 about a year ago, and it's kind of grudgingly moved back to around $315. I think gold is in the early stages of a bull market. Now, gold is a commodity (although it's also money), and not as well-followed as the stock market, so the bottoming process might be slightly different.

But I believe the psychology surrounding the gold market is quite instructive for bottoms at large. A couple of years ago, if you admitted to being bullish on gold, people would have looked at you as though they pitied you for being so dimwitted. In my opinion, that is the degree of disaffection we've got to see before it's safe to return to the U.S. equity market in any kind of moderately aggressive fashion.

~~~~~
Wheezy Al shuns musty tomes
Probably one of the most objectionable lines in a speech already riddled with objectionable comments was the following: "We were confronted with forces that none of us had personally experienced. Aside from the then-recent experience of Japan, only history books and musty archives gave us clues to the appropriate stance for policy."

Well, I would submit that needing "musty" history books to help solve a problem does not absolve one for not recognizing a bubble. That is precisely what those of us who recognized the bubble relied on to guide us through the period.

Meanwhile, as many of us were able to recognize the bubble -- because it was so obvious -- the chairman of our nation's central bank is now on record as asking us to believe that so long as he has not personally experienced a bubble, he may be excused from not recognizing it. Of course, he not only didn't recognize the bubble, he grabbed the pom-poms and microphone, and cheered about productivity at every possible chance, as well as the glories of the Internet.

In any event, Greenspan's inability to learn from history also surfaces in his disregard for the historical value of Fed minutes. Though not really reprised in the Journal story, his speech contains one boldfaced lie. To paraphrase, he said that the Fed had no tools to dampen the speculation of the bubble, short of fostering a serious economic setback. In the speech, he said, "It seems reasonable to generalize from our recent experience that no low-risk, low-cost incremental monetary tightening exists that can reliably deflate a bubble. But is there some policy that can at least limit the size of a bubble, and hence the destructive fallout? From the evidence to date, the answer appears to be no." This completely and totally contradicts the minutes of the Fed meeting in the fall of 1996 (released this past year), in which they admitted that raising margin requirements certainly would have popped the bubble, but they were afraid of what other damage might have been done.

The minutes recorded Greenspan's comments as follows: "I recognize that there is a stock market bubble problem at this point. . . . We do have the possibility of raising major concerns by increasing margin requirements. I guarantee that if you want to get rid of the bubble, whatever it is, that will do it. My concern is that I'm not sure what else it will do." I would argue that most people would rather have experienced a little economic turmoil back in 1997, 1998 or 1999 -- via the Fed doing the right thing -- than be subjected to the current, greater misallocation of capital and destruction due to Fed cheerleading and issuing what the market believed to be a put.

In the misallocation-of-capital department, those of you who would like to believe that Al has correctly pronounced the housing bubble to be nonexistent, please raise your hand, and please be assured that you have answered incorrectly. His assessment is going to be wrong, just as he has been wrong about virtually everything he's said or decided in his professional career. I point this out, once again, so that people don't suck in and believe what the Fed tells them, and so that they can think for themselves and be prepared. This is not to say that everyone should go out and sell their houses and rent. But I think that people would be wise to figure out ways to pay down their debt, rather than take out a home-mortgage loan and get more levered up, because housing prices are the next bubble to deflate.

Untenably lame
Now on to The New York Times for a look at a recent story titled "Policy makers hone debate: When to hold, when to fold." In the course of this news analysis, the paper ran another totally disingenuous follow-up comment by Laurence Meyer: "There was a sense of frustration that we couldn't deal better with the asset price bubble. (You see, now he too is admitting that they knew there was a bubble.) But I don't think anybody has come up with a strategy that people feel would have gotten the job done." And he goes on to lash out at his critics, who think that the Fed should have tightened monetary policy. "That's a politically untenable situation for a central bank to be in." (He is referring to the wealth loss that would occur.)

So, the former Fed head is also now acknowledging that there was a bubble. This is yet another example of how cowardly the Fed is (and yet one more example of the Queen's misallocation of knighthood). It is supposed to be their job to lean against the wind, not to pour gasoline on a lit fire. They crowed that CPI inflation was under control, so they felt no need to tighten, which is why you can only have an asset-price inflation when CPI inflation is more or less under control. (Of course, this time, it was even more under control because of the hedonic pricing that made it seem even lower than it was, but that's another subject for another day.)

So, that about sums up what I have to say about this miserable, whiny speech by Greenspan on behalf of the Fed. I would just like to emphasize that his admission of the bubble should mark the start of the process that ends in his being completely discredited. Yes, before this is all through, people will see that their apparent maestro is, in fact, the most incompetent and irresponsible Fed chairman in history. And sadly, lots of them will pay for his experiments and subsequent mistakes.

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Periodic Ponzi Update PPU -- $hifty, 22:42:15 09/15/02 Sun

http://home.columbus.rr.com/rossl/gold.htm

Periodic Ponzi Update PPU

Nasdaq 1,291.4 + Dow 8,312.69 = 9,604.09 divide by 2 = 4,802.04 Ponzi

Down 59.21 from last week.

Thanks RossL for the link!

Were just 132.84 points above the all time Ponzi low.

The Ponzi has fallen 2,976.92 points since April 7, 2000 when we started to keep track of it!

A trend I think will continue.

Be on the lookout for the fat lady.

I think I hear her warming up behind the curtain.

Go GATA !

Go Gold !

$hifty

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Gold -- Sharefin, 19:56:20 09/15/02 Sun

September 11 Revisited

On the former you may recall our discussion of the Kondratieff winter. The Kondratieff winter is not just about falling stock markets and debt implosions it covers the entire broad socio/economic spectrum. The most recent Kondratieff winter (1930-1949) is a case in point. This covered the Great Depression, the rise of Nazi Germany and Imperial Japan, and World War 2. We are entering a similar period. Now it is the rise of the world's only superpower (some have called the United States the new Rome) and the rise of fundamentalist extremism. Where it all leads of course is open to conjecture at this time.

~~

With the war drums continuing to beat holding gold and oil in your portfolio should continue to outperform the general stock market. Indeed it has been shown that gold outperforms in the Kondratieff winter so the preference area is gold stocks. And finally it should also be pointed out that during periods of war the stock market is not the place to be. If one recalls at the end of the 1970's when there were tensions in the Mid-East that culminated in another oil crisis, the Iranian revolution, the Iranian hostage taking and the Iraq/Iran war both oil and gold soared while the stock market fell.

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Gold -- Sharefin, 19:21:59 09/15/02 Sun

Gold funds an option in tough times

Economic hard times typically are good for gold prices, so it's no surprise that in a year filled with anxiety about terrorism and concerns about accounting scandals that gold mutual funds have enjoyed solid returns.
No other fund category has performed better in the bear market. While almost all categories have posted negative returns, precious metals funds returned an average of 43.51 percent from January through August, according to fund tracker Lipper Inc.
That compares with 7.17 percent for real estate funds and 3.46 percent for bond funds, the more popular safe havens for investors.
"We're still in the early stages of a bull market -- maybe approaching the middle stage -- for gold," said Standard & Poor's metals analyst Leo Larkin.

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Gold -- Sharefin, 19:10:29 09/15/02 Sun

Risky Business (some thoughts on Barrick's hedge programme)

Dr Martin Murenbeeld recently published a study in which he discusses the practice of hedging future gold production in general and Barrick Gold's hedge programme in particular. The study is titled "In Defense of Gold Hedging - The Case of Barrick" and anyone interested in reading it can do so by going here and downloading the document in pdf format.

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Gold -- Sharefin, 19:07:47 09/15/02 Sun

Dueling forces

To repeat our summary of the gold market from the previous report, "Volatility and whipsaws notwithstanding, the immediate trend in gold futures remains up until the rim of the parabolic bowl in the daily chart is broken. Crossing above $325-$326 would be very bullish and would probably lead to a test of the June highs. Piercing above the June highs, even if only marginally, would indicate that gold will seek higher levels in coming months (even if the new high is followed by a pullback and lengthy consolidation)."

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Silver -- Sharefin, 19:05:41 09/15/02 Sun

A silver sling-shot set-up

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Gold -- Sharefin, 08:18:28 09/14/02 Sat

ABOLISH THE FEDERAL RESERVE

Congressman Ron Paul
U.S. House of Representatives
September 10, 2002

ABOLISH THE FEDERAL RESERVE

Mr. Speaker, I rise to introduce legislation to restore financial stability to America's economy by abolishing the Federal Reserve. I also ask unanimous consent to insert the attached article by Lew Rockwell, president of the Ludwig Von Mises Institute, which explains the benefits of abolishing the Fed and restoring the gold standard, into the record.

Since the creation of the Federal Reserve, middle and working-class Americans have been victimized by a boom-and-bust monetary policy. In addition, most Americans have suffered a steadily eroding purchasing power because of the Federal Reserve's inflationary policies. This represents a real, if hidden, tax imposed on the American people.

From the Great Depression, to the stagflation of the seventies, to the burst of the dotcom bubble last year, every economic downturn suffered by the country over the last 80 years can be traced to Federal Reserve policy. The Fed has followed a consistent policy of flooding the economy with easy money, leading to a misallocation of resources and an artificial "boom" followed by a recession or depression when the Fed-created bubble bursts.

With a stable currency, American exporters will no longer be held hostage to an erratic monetary policy. Stabilizing the currency will also give Americans new incentives to save as they will no longer have to fear inflation eroding their savings. Those members concerned about increasing America's exports or the low rate of savings should be enthusiastic supporters of this legislation.

Though the Federal Reserve policy harms the average American, it benefits those in a position to take advantage of the cycles in monetary policy. The main beneficiaries are those who receive access to artificially inflated money and/or credit before the inflationary effects of the policy impact the entire economy. Federal Reserve policies also benefit big spending politicians who use the inflated currency created by the Fed to hide the true costs of the welfare-warfare state. It is time for Congress to put the interests of the American people ahead of the special interests and their own appetite for big government.

Abolishing the Federal Reserve will allow Congress to reassert its constitutional authority over monetary policy. The United States Constitution grants to Congress the authority to coin money and regulate the value of the currency. The Constitution does not give Congress the authority to delegate control over monetary policy to a central bank. Furthermore, the Constitution certainly does not empower the federal government to erode the American standard of living via an inflationary monetary policy.

In fact, Congress' constitutional mandate regarding monetary policy should only permit currency backed by stable commodities such as silver and gold to be used as legal tender. Therefore, abolishing the Federal Reserve and returning to a constitutional system will enable America to return to the type of monetary system envisioned by our nation's founders: one where the value of money is consistent because it is tied to a commodity such as gold. Such a monetary system is the basis of a true free-market economy.

In conclusion, Mr. Speaker, I urge my colleagues to stand up for working Americans by putting an end to the manipulation of the money supply which erodes Americans' standard of living, enlarges big government, and enriches well-connected elites, by cosponsoring my legislation to abolish the Federal Reserve.



WHY GOLD?
By Llewell