ENRON AND THE BUBBLE

THE DAILY RECKONING

PARIS, FRANCE

WEDNESDAY, 6 FEBRUARY 2002

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*** Stocks stink...but gold, well what can you say about
it?...

*** Has a bull market in gold shares begun? Is the Pope
Catholic?...

*** Record bankruptcies, tougher lending policies,
Enron...long live the Queen...and more!...

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Stocks sink...but gold soars. Element number 79 on
the periodic table rose $9 yesterday. It's up $20 in the
last 2 weeks.

Gold sales in Japan have risen 300%. And mining
stocks are at a two-year high. Goldfields rose 13%
yesterday. Harmony was up 5%. Gold mutual funds have
been the best-performing sector for the past 14 months.

"The new bull market in gold stocks that has been
underway for the past few months is not, however, being
fuelled by us 'bugs'," writes Gary North."It's not the
gold sector funds or the mining sector funds...the gold
sector funds don't have any money, and the mining sector
funds are skeptical of gold. It is my view that a few of
the more savvy portfolio managers...are buying gold.

"Consider for a minute just how many mutual funds
there are - ten thousand? - and how many trillions of
dollars are invested in those funds. It is only logical
that some of these thousands of fund managers understand
the value of gold and are beginning to move a little
money into gold stocks."

......

Grüße

G.

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