-Caveat Lector- WJPBR Email News List [EMAIL PROTECTED] Peace at any cost is a prelude to war! Don McAlvany's Online Market Commentary: October. 7,1999 This is a Don McAlvany E(mail)-Alert! AT LAST THE PREDICTABLE IS HAPPENING- PLAIN AND SIMPLE! After years of observing perhaps the most unusual gold market dealings in history by some of the biggest world financial powers. and after months of predicting that the gold market would come back, and perhaps with a vengeance, we are happy to say that that time appears to have arrived! After reaching a 20 year low of $252, gold has, within just a two week period, rocketed up almost 30% to over $325 an ounce! The question now is, what happens next? Can gold go back down? Will it continue in this rapid uptrend? Or will it gradually return to what some may call normal levels for prices realized. Through out this e-mail, we will outline our prediction for gold. and a few other things. For the average American, most of this is still very new, after all they have been used to their stock brokers investing into various stocks, mutual funds, U.S. Dollars etc.. Unfortunately, for the "average" American, this could soon spell a major financial disaster. Now is the time to position yourself ahead of the crowd and get out of harms way!!! This "E-alert" is to inform of two very important market observations: 1. There is a near panic in the gold market- after years of the world's most influential central and bullion bankers manipulating the gold market to their advantage, the rules of supply and demand are finally catching up. By artificially depressing the price of gold while making short term loans on millions of ounces of non-existent gold, which has led to an enormous short position on gold futures (in the neighborhood of 10,000 tons),key bank executives are now waking up to the reality that it has become virtually impossible for the gold mining industry to keep up with "all of the gold futures contracts that are out there." Hence, as we have predicted, normal supply-and-demand forces may now be poised to take over the gold market as European central banks move to limit gold leasing. The Gold Anti-Trust Action Committee chairman, Bill Murphy warned that "most European banks were unaware of what they were getting into by shorting so many gold loans, and the move to restrict further leases of gold is an attempt to stop the bloodletting." Kevin Crisp, treasury analyst for Counterparty Risk Management Group Co-Chair at J.P. Morgan stated "Bullion derivatives - which include over -the-counter gold loans, forward sales, futures and options- developed over a decade of abundant liquidity and sliding spot prices. .-"This market developed in a falling price environment. We have not stress-tested how this works with a rising price," he said. "There are very few people who have lived through such volatile trading conditions in the gold market. It's hard to get your mind around the changes. No one knows how big or complex this market is." Folks, one thing is for sure - The shorts are scared to death! Bill King of M. Ramsey King Securities, Inc. made a fascinating observation in his Oct. 6,1999 market comment, "Most everyone has missed an important part of the 15 European central bank communique, on gold. Most know the 15 CBs restricted gold sales and leasing, but few are aware of, or understand the significance of the CB's statement; "The signatories to this agreement have agreed not to expand their gold leasing and their use of gold futures and options over this period (5 years)." Who knew central banks used gold futures and options? This strongly implies central banks, including the Fed, have used gold futures and options to manipulate gold. Now that we know central banks manipulated gold the past X- years; will evidence emerge that CBs manipulated stock markets?" Because there is such a massive deficit of physical gold, this market will continue to "panic" in search of the once "barbaric", "luster loosing" yellow metal that at one time nobody "really" wanted because it was a "non-performing, stagnant" asset. Well folks, gold is no longer dead, in fact it never was! Now, a major shift in global economics is taking place due to the price of gold rising. It will force the gold market manipulators to loose control of their grip on the gold market. 2. The U.S. Dollar is soon to face a few major obstacles. The average American has been content with the appearance of a stable U.S. dollar for quite some time now. The question now is, what is the source of faith behind this currency? Will the dollar hold it's enviable position. Is there a meaningful risk of a fall in its purchasing power? Uneasy lies the head that wears the crown: The dollar bull-market has end. There is reason that the U.S. ten-year note yields six percentage points more than the Japanese ten-year note and a point and change more than the benchmark European ten-year note. It is because there is a mighty surplus of dollars in the world. In other words, is an American advised to diversify out of his invested U.S. dollar, out of the world's favorite money? Our answer, obviously, is yes. Stay tuned for our next E-Alert as we discuss more of the unraveling of the U.S. Dollar. Don McAlvany's Online Market Commentary is brought to you by International Collector's Associates. For more information on Don McAlvany and ICA please visit us again at http://www.mcalvany.com If you would like to contact us for a consultation regarding your portfolio please call 1-800- 525-9556 **COPYRIGHT NOTICE** In accordance with Title 17 U. S. C. Section 107, any copyrighted work in this message is distributed under fair use without profit or payment to those who have expressed a prior interest in receiving the included information for nonprofit research and educational purposes only.[Ref. http://www.law.cornell.edu/uscode/17/107.shtml ] DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance�not soapboxing! 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