OUTSTANDING INVESTMENTS E-ALERT
Gold According to Schultz
June 19, 2001



Dear Outstanding Investments Reader,

Some of you may not know Harry Schultz. For the
uninitiated, he writes one of the longest-standing
investment newsletters, the International Harry Schultz
Letter. For more than three decades he has created fortunes
for more than one generation of readers. Along with my
father, Harry is one of the"original goldbugs."

I first met Harry at our farm in 1966 when I was just nine
years old. He was visiting my father and convinced him
that inflation would soon be taking off. His advice to C.
V. -- launch a hard money newsletter. The rest, as the
saying goes, is history.

Of course, I also followed Harry's advice (writing a hard
money newsletter), and I recently decided to give him a
call to get his opinion on gold's latest activity.

As a courtesy, Harry forwarded me an article on the Midas
Metal. It's an enlightening article, which will soon
appear in HSL.

But in Harry's words,"U can have first worldwide crack at
it."

So here it is, the outlook for gold from a man who has had
an incredible track record at predicting most of its major
moves.


John Myers
Outstanding Investments


* * * * * * * * * * * * * * * * * * * * * * *

Gold --

These facts stick out:

1. There is powerful buying of gold shares. For the first
time in ages, gold stocks recently appeared on the NYSE
list of"biggest gainers" of the day! On May 18, Glamis,
Homestake & Ashanti appeared with gains of 10-12%. On May
24, Glamis & Meridian appeared. On June 1, Glamis again. On
June 8 was AgnicoEagle, Anglo Gold, Homestake, Glamis &
Newmont. On June 8, gold shares made up 1/3rd of the total
big gainer list! This bespeaks depth of buying. And when
bullion was pushed down in late May by the illegal price
cartel, gold shares didn't give up all their gains. Most
were retained. Gold stks are in strong hands. Weak hands
left the scene long ago. People are accumulating, esp on
setbacks. GATA reported:"Gold shares remain firm, are
being bought up by wealthy individuals. This info from one
of most popular stock clearing NY firms."

2. The FT Gold Index has broken up from a big base pattern,
forecasting higher prices.

3. Inflation is now voiced as a major concern around the
world; that's much of the rationale for gold's rise.

4. Gold price action is pro-active & has strong
relative-strength.

5. US$ rose with gold! That's rare. M. Edelson says"A
split of old system is at hand; gold & $ will move together
for some time." A strong $ won't mean weak gold. When $
gains, it's a sign of bigger problems outside the US that
could easily light a fire under gold." (WorldNetNews).

6. Gold production is falling fast.

7. Gold bullion demand is rising.

8. This is more presumption than fact: heavily hedged mines
(e.g., Barrick) & bullion dealers/banks are sweating blood
as a gold short squeeze of historic proportions is
tightening around their conniving necks.

9. US controlled-media pretend they're unaware of GATA &
gold price manipulation, but the White House is aware of
it. Lawrence B. Lindsey, Assistant to the President for
Economic Policy, has acknowledged to Bill Murphy of GATA
that he's received the data but"As it's the subject of
litigation, it would be inappropriate for me to make any
comment on the matter." U can't be more aware than that! He
refers, of course, to Reg Howe's suit against bullion banks
& parts of the US govt for gold price fixing, during
Clinton admin (& ongoing), in violation of anti-trust law.
GWB can put an end to the price fixing or let it continue &
become a defacto co-conspirator. I'm sure GWB is against
the fixing, but it'll take much courage to face down the
insiders/fixers. He was born into the insider world, but
rebelled against it at college, is a free spirit & maverick
at heart. Like me.

Benefit from gold price run ups/downs by noting which stks
moved most during any run up, so U know which to buy on
pullback. One such was Durban Deep. I bought, will get
more; highly leveraged & v.speculative. Agnico Eagle &
Placer Dome are blue chips, with good chart patterns, as
has Harmony. I bought these too. U should already have good
profits if U bought when I recommended strongly in early
March...

If U wait to buy til bullion breaks out to $305, or the
price fixers are brought to trial, U'll hesitate to buy at
all because then gold stock prices will doubtless be 100%
higher & bullion on its way to $525 & then $600. But don't
buy if U require quick results or if U plan to shoot me if
nothing happens. Gold is political & thus defies prediction
precision...

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