Date: Sun Oct 31 1999 23:15

Gambler (FOR SALE - ONE HUNDRED AND TWENTY SEVEN 1-oz Gold Eagles!)

ID#434132:

Copyright ) 1999 Gambler/Kitco Inc. All rights reserved

Yes, gold lovers, it's true. They're for sale! I want to do my small part in helping out the desperate shorts to cover. So spread the word to any gold shorts you may know of. Let all of those mega-short Australian producers know they're for sale, too!

As posted last summer, my goal was to accumulate atleast 100 one ounce gold eagles prior to BOE's second auction on Sept. 21st. My purchases began last spring and accelerated into July ending just prior to the auction for an average purchase price of $274.

Now, what standard of fair value shall I use to determine the sale price of my 127 1oz gold coins? Because gold is valued in US dollars, perhaps I should base its fair value on the current US trade deficit. Can we agree on an approximate annual 300 BILLION give or take a few bones? Let's see, there's atleast a US$ trillion or so out there in foreign hands from the cummulative trade deficit that will come back soon as the dollar continues to decline in value and interest rates continue to rise. ( Reminds me of late 60's when Europe had all those greenbacks! ) The U.S. claims to have about 260 million ounces or so in its coffers. Assuming this hasn't been loaned out already, we have ( 1oz=$300 ) 260*300=78,000 million or 78 billion in gold which is roughly ( 300 billion / 78 billion = .26 ) or 3 months worth of gold.

But since we have atleast a trillion out in foreign hands, that equates to 1 trillion/260 million ounces=3,846 per ounce gold. Should I sell my 127 coins for a total of 127 * 3,846 = $488,442 ? Nah, that's change for chumps.

Okay, forget about the trade debt, then how about if I base fair value for my gold on US Money Supply. M-1, M-2, M-3?

Well, M-1 lemme see chere: 1.2 trillion / 260 million = $4,615 per ounce. Nah, as much as I want to help those saps, it's still chump! M-2 seechere: 4.6 trill / 260 mill = $17,692 per ounce. hmmm 127x17,692 = $2,246,884. Well, I must admit that's a little closer to what I had in mind. But, well you know, I love my gold and all so let's consider US government debt at about 5.6 trillion - no better yet let's use M-3 coming in about 6.2 trillion.

6.2 trill/260 mill = $23,846 per ounce! That equates to a grand total of US$3,028,442.

Now, all things being fair and equal, this would be a fair price to sell IF there wasn't a huge annual gold deficit in addition to all the forward sales! Well some figures suggest anywhere from a 100 to a 150 tonnes per month. Okay, Mr. Gold Short, I'll give you the benefit of the doubt, we'll use 1,200 tonnes per year as our deficit. So I'm going to have to assess you an additional premium and mark up fair value from wholesale to retail, let's see that comes to:

3,028,442 x 3 = $9,085,326!

= $71,538 per ounce

-- Andy (2000EOD@prodigy.net), October 31, 1999

Answers

That's great!! I was only figuring $30,000 per ounce. I better get some more ounces tomorrow.

dave

-- dave (wootendave@hotmail.com), November 01, 1999.

Andy: I didn't check the math, but sounds like a deal at half the price. I (we) wish! :-)

-- A (A@AisA.com), November 01, 1999.

I gotta hand it to you Andy - you really are full of crap! Let's just be thankful that you don't fly...

-- Please (don't@squeeze.andy), November 01, 1999.

Thank you.

I DO try and maintain my standards.

-- Andy (2000EOD@prodigy.net), November 01, 1999.

Like I said, I didn't check the math -- nor even the assumptions. But it looks like at LEAST a semi-reasonable approach to an evalution of where gold could be if all the scam money was converted to something real. But all the lickspittles (is that a good limey term) to the powers that be (PTB) seem to take great pleasure in being jerked around -- monetarily and otherwise -- like marionettes by the PTB.

I doubt if Andy really thinks gold will ever hit that price -- at least not until (if/when) we need wheelbarrows to cart our currency around like in Germany following WWI (not WWII). My take is that it is merely an educational exercise outlining the magnitude of the reaming.

Keep on truckin', Andy.

-- A (A@AisA.com), November 01, 1999.

To Cut & Paste (Andy)

Yet ANOTHER great cut & paste, Cut & Paste. Good to see you've recovered from your 'illness' after gold hit the deck.

-- Asking (Asking@a Question.com), November 01, 1999.

Here's one for Asking and all his humourless troll-friends, especially old Kentucky...

A chicken and an egg are lying in bed. The egg is smoking a cigarette with a satisfied smile on its face.

The Chicken is frowning and looking a bit pissed off. The Chicken mutters to no one in particular,

"Well, I guess we finally answered THAT question!"

-- Andy (2000EOD@prodigy.net), November 01, 1999.

LOL, Andy. Having had my goodnight chuckle, I can now go (giggling all the way) to bed. Thanks!

-- Tricia the Canuck (tricia_canuck@hotmail.com), November 01, 1999.

And the sad thing Tricia is I fear this mirror's old Kentucky's sex life! :)

-- Andy (2000EOD@prodigy.net), November 01, 1999.

Q. How do you get Cut & Paste off your front porch?

A. Pay for the pizza.

-- ASking (Asking@a question.com), November 01, 1999.

AssKing,

you should do stand up... you'd make a good target... :)

-- Andy (2000EOD@prodigy.net), November 01, 1999.

How do you get the disruptive trolls out of your face?

A: Exercise moderation?

B: Wait for them to get prosecuted for trashing one of their victims' systems"?

C: ???

-- Ron Schwarz (rs@clubvb.com.delete.this), November 01, 1999.

I find it quite telling Ron that they ALL gravitate here...

None of us in contrast BOTHERS to go over *there* - what's the point?

We don't want to disrupt anyone...

We have right on our side, BITR or not we may (almost certainly have already following disasters over the last two years) be saving lives here...

KARMA

They are all building up plenty of pay-off for themselves... eventually...

-- Andy (2000EOD@prodigy.net), November 01, 1999.

i was wondering the same thing ....

why DO all the pollies come over hear, when none of us ever go over there???

-- lou (lanny1@ix.netcom.com), November 01, 1999.

Andy, I wonder if all the readers understand the Kentucky colloquilisms, Such as lemme see chere.

I learned them from living and growing up in southern Ohio among the Kentuckians.

I believe it came from the way the Briarhoppers said "right here". They pronounced it "rat chere". Therefore when we talk Kentuckian, we pronounce "see here" as seechere.

Is that rat, Andy?

Herb

-- (herb01@prodigy.net), November 01, 1999.

I dunno Herb, Kentucky is just my "pet" name for my little feathered troll-friend Chicken Little aka "Kentucky" frahd chicken :)

-- Andy (2000EOD@prodigy.net), November 01, 1999.

Andy, to bring the discussion back to the topic you so eloquently raised---the true price of gold---I thank you. While the price may never move that high, you do us all a great service by illustrating the extent of the dollar's depreciation at the hands of the feds. No private criminal enterprise on earth could come close to this level of plunder. Does anyone need further evidence that governments are simply mafias in drag?

-- Y2K Pioneer (Pioneer@aol.org), November 01, 1999.

Andy, Andy, Andy. There was a time when I thought you had some really nice thoughtfull and insightfull essays. I'm not so sure now. Have you had a vacation lately? It might be a good time to take a few days away from the forum to rest, reenergize, and reevaluate why you are here. Best of luck Andy.

-- jbsmith (joebobsmith@yahoo.com), November 01, 1999.

Andy, I'm rich! Of course, civilization has fallen down about our heads in the meantime... (Well, will fall in the next several months...)

-- Mara (MaraWayne@aol.com), November 01, 1999.

Thank you for your concern jb.

I am taking your advice and have decided to go on holiday to England, France, Belgium and Grand Canaria.

I will only look at the price of gold and silver once a day when I read the morning page 3.

In the meantime, have fun everybody, and I'll see you all in a few weeks when the POG I hope will have rebounded slightly.

One has to remember that there is a massive overhang of positions for the Dec. and Jan. contracts.

this means if the POG is over certain levels then certain folks will go banjrupt. Hence the the clockwork activity to drive gold down just prior to option expiry dates.

Fraudulent and illegal yes, but hey, even Hillary is in on the game so the little guy will get shafted.

Be patient, hold physical, watch the markets self-destruct.

-- Andy (2000EOD@prodigy.net), November 02, 1999.

Andy,

Enjoy your trip. Some of us will enjoy the break from the posts of the shameless goldbug hype that you like to do. :-)

Jerry

-- Jerry B (skeptic76@erols.com), November 02, 1999.