As a friend of mine used to say, "I don't understand half of what I know about this." :) But it sounds like significant, important sub-surface events are transpiring. Crash next week...?

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To: <anonacash@egroups.com>
From: "Breakpoint Holdings Corporation" =
<breakpoint@anonacash.com>
Date sent: Thu, 7 Dec 2000 09:57:38 -0800
Send reply to: anonacash@egroups.com
Subject: [anonacash] FW: Golden times?

Yesterday gold moved up another $3.60, which tells us a number of
things. That the US$ is losing strength is the first. This is brought

about by continuing turmoil in the market, the Presidential election
standoff, the price of oil and lastly the incredible hulk of a trade
deficit more than likely causing repatriation of overseas funds.

Second, the gold price has been hammered so many times of late, most
everyone has written off investing in it as a bad joke.

Third, for all the sellers that have caused the price to remain under
pressure, there must have been buyers, after all, there are always two
sides to a transaction. This leads to the inevitable thinking process
between buyers and sellers where someone sooner or later decides there
is such a great bargain out there that maybe they better pick more up
and the buyers overwhelm the sellers.

Lastly, corporate profits are drying up, and no matter what Greenspan
says to appease the market, the drop in profits and stock prices is
going to have investors looking for a new home for their money.

In the gold market, this leads to decreased selling pressure, as the
sellers believe they can get a better price by holding off, and more
buyers, for as soon as the price heads up, especially after such a
prolonged period of sell offs, those who have sold short the market
must invariably decide to ensure they do not take losses, so they
cover. this in turn ignites further buying and we are now at the stage
where, unless something is really amiss with our thinking, fear of
losses and greed for profits will overcome any possible manipulative
selling.

It happened last September and many stocks made great gains. Kinross
traded as high as CDN$4.00 then and closed at CDN$1.04 today, gaing
100% from a three month drop that had its floor at CDN$0.50. A
ludicrous price and indicative of the last gasp of sellers.

The same can be said for Durban Roodeport Deep ( DROOY NASDAQ ). It
dropped to US$0.59, where it too was completely oversold and today it
has gained approximately US$0.25 to stand at US$0.84. Still far short
of a reasonable stock price. The volume yesterday on Kinross was 1.3
million and Durban 1.8 million. So we see that buyers are coming back
into the market in droves.

Now can this move up in gold be sustained. Last September in just =
three
days it jumped from US$260 to US$340. So be advised it can and most
probably will do it again. It will of course depend on how badly the
Australians need to cover their hedges, and how out of sync, the
derivatives are. Don't forget, when this starts to snowball, =
especially
as many investors see a chance for a quick gain, it will rapidly spin
out of control as those bullion houses that were leading the seling
wave will come back in as buyers.

When and /or if it gets back to $320, many gold miners are going to
wish they didn't have their hedge books and if it gets to US$360, even
Barrick gold is going to have problems.

What will also happen is there will be many fortunes made from this
next run up. It doesn't take a rocket scientist to see that. But where
do you put your money?

Judging from the price of gold stocks, just about any senior company
will give a short term profit in the range of 30% to 100%, but some
will give very good profits of 200% to 400%, while others will give
superior gains of 500% or more, depending on how far this gold rally
goes.

This is no slam dunk though, as there will more than likely be the
increased volatility in the market that will scare many investors who
have already had their nerves shaken from the NASDAQ rollercoaste. =
This
however is not much different from what happened to stock prices when
the oil market was beaten down to US$10 a Bbl. Many nervous investors
got left behind then and had to play catchup, losing many golden
opportunities there also.

In closing, we foresee three possibilities. First, the POG will get
hammered back to forestall any further gains. Next, the eventuality of
massive price increases as the hedgers, shorts and other derivative
holders have to cover, causing an unchecked upward spiral. Or third, =
in
the event they have managed to restructure their paper, a continual
grinding increase.

We favor the second scenario, more than likely starting when the POG
hits the US$290 barrier, as it most closely represents what we believe
is very large short and exposed derivative positions that will have to
be covered.

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