Another article from TheStreet.com

GOLD PRICES OK HERE, FOR NOW!

Thu, 06 May 1999

To worry about the current low price of gold today is
the wrong approach since Y2K will take care of these
temporary price issues.

It is my opinion after 2 1/2 years and 3500 hours of
research and lectures that gold prices will have no
problem in advancing this Fall through the year 2000.
The current "short positions" held by banks, and
financal institutions will only add fuel to the gold
price fire. Please, let them pile on some more fuel!
Talking to Congress and attorneys is casting "pearls
before swine".

Reports to Congress by the CIA, State Dept, and
independent research groups (Gartner Group) all agree
that Y2K is a serious economic issue that faces foreign
counties as well as the US. Only 19 of 130+ countries
have reported even "starting" any Y2K remediation. For
some countries like Italy (started in Jan. 1999),
Germany (late) and others it is now too late.(EMU
countries are in Y2K trouble). Many of these Y2K ill
prepared countries will encounter "losses of electrical
generation, distribution, loss of telecommunication,
loss of banking,loss of equity markets, loss of
government services", and some, the loss of government
itself.(Copies of these internet reports are
available). To think that the partial, or total loss of
these services, all on the same day and week, would not
budge the price of gold above $300 per oz. is without
reason. The flight to safety will be crushing!

The countries of Germany (oil sources Russia 40%, OPEC
60%), Japan (100% imports) and the US (60%imports) have
all indicated publicly that they have concern for their
source of oil. The Energy Dept. last week recommended
"stockpiling oil now". Imbedded non-compliant chips
with Y2K problems are at the heart of all oil rigs,
pumping stations, refineries, transportation ships and
pipelines. The world-wide oil distribution system is
broken and will not be fixed in time. Pirated software
in China(96%), Korea (80%), Europe (40%) and others
will make it impossible to get all systems ready by
Jan. 1, 2000. Many of these countries have no technical
human resources, or funding to bring in the fix in
time. Foreign political turmoil and public rioting is a
high probability in light of these potential Y2K
problems. With the collapse of the infrastructures in
many countries it would only follow that their
currencies will follow. The flight to gold and silver
will be head snapping. The flight from "paper" will
also be fueled by the collapse in derivatives in the
interest rate, and currency markets. The "Long Term
Capital" problem will be a example of the future except
the situation will be multiplied by the thousands.

10Q SEC reports on Y2K this first quarter of 1999 make
some of the "happy face" corporate and banking
statements in this country even look suspect.
Government and corporate America are missing their own
self imposed deadlines. Aren't we supposed to be at the
head of the class! If GM doesn't make it (100,000
suppliers) will South America, Africa, and Asia make
it? The "shorts" will get caught in the biggest
transfer of wealth in the world since the crash of
1929. Until all my friends and associats have bought
their CHEAP gold, silver, oil and grain options I would
prefer that the prices remain here at thse levels for a
short time longer. Bullish on the Metals! Bearish on
Currencies!

David S. Elliott, Author: "Everyone's Guide to Making a
Million Dollars in the Year 2000 Crash" (avaliable @
amazon.com) email: www.Cwaves@home.com web:
www.Y2Kmerchant.com web: www.davidelliott.com

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