Gold Editorials & Commentary

November 15, 2000

The Crash of 1987

Memo To: Bob Woodward, Washington Post

From: Jude Wanniski

Re: Alan Greenspan, the Maestro

On Oct. 24th (the weekend) I wrote an article titled "Newmonts Big Clue" for GOLD-EAGLE. In that article I outlined the very high confidence big picture Ewave pattern unfolding in NEM and said, "a Wave 4 rally ended on 9-12 at 19.81.

The Canadian dollar saw a strong rise during 1999. See the Finance Dept website.

Midweek heaviness . .

Just how low can the NASDAQ go? The answer, based on the factual, historical record, is 87%. 87% is what the New York stock exchange lost in value between October 1929 and its eventual bottom in 1933.

A recent discovery has shed new light on our understanding of economic cycles.

1. Gold is Undervalued. Right now, the price of gold is trading at $266 per ounce. The following figures put the current price of gold in historical perspective:

Nobody can say that our local volcano didn't give us plenty of warning before it exploded in 1980. The line isn't from dead silence to massive explosion; the line is hundreds of small earthquakes, a brief silence and THEN, the big explosion.

A true bear market is like being sandpapered to death. It takes at least one step up for every three steps down. And so far, this bear is pretty much following that precedent.

Has the euro bottomed? Is it likely to rally any time soon? Will it survive in its current form? For those who wish to skip the following 1500 words of opinion and analysis the short answers to these questions are no, yes and no.

From time to time we like to take a break from the routine of covering all the various capital markets and focus specifically on gold.

The tragedy of the Kursk reminds us of the shambles that is Russia. It follows upon the embarrassment of Chechnya. And both of these, it is reasonably deduced, result from the failure of the Russian economy.

To: Al Gore

From: Bob Rubin

Subject: For your consideration

Dear Al,

Psychological worries transition . .

Over the last two weeks, gold has traded sideways in a narrow range between $264 and $267, closing at $265.70 on Friday. On an intraday basis, bullion reached a low of $263.25 on November 7, the day of the Bank of England auction.

1. "If a gold standard had never existed, it might be necessary to invent something of the kind". This quotation from a monograph by Dennis Robertson (Money, 1928, p.

Once upon a time there was a very greedy king. This king wanted to own all of the gold in his kingdom. Aside from its beauty it was, after all, money.

This time it is…different

Conviction vacillated on-cue . .

Gold is poised to launch its first leg in its incipient 9-year bull market. The fateful hour is nigh and could begin at any time between now and late December.

Most of us understand what a cartel is, namely, a single entity or small group, acting in consort, for the designed purpose of imposing a price on a commodity different than what the free market may dictate.

The last intermediate and minor cycles peaked on Monday, Nov. 7 and from this point forward all major indices will experience an overall decline into mid-December, dragged lower by the influence of the cyclical time cluster now taking place.

Recent events are lining up for an economic and political crisis of global proportions. Anyone not living in a permanent stupor must be nervous about the current situation. The $%^#$ has hit the fan and boy, it's flying everywhere.

1.

Q:

Gridlock on Wall Street equaled political doubts . .

Even before the House Voted or the Judge tipped his hand . .

The price of gold bounced off of the $270 level in May, August, and early October. This was viewed as a significant support base that, if breached, might bring on an avalanche of selling that could drive the beleaguered metal to new long-term lows.

A work of fiction