THE EDITORIAL PAGE Letters to the Editor Gold’s time is here

Bank of America, chapter 11 rumors abound. Dallas-based Western Savings Bank down and three other banks announced down, ($4 billion needed to stay afloat).

Farm Credit system needing $3 billion now and $6 billion before April to survive, (only one in every four farmers are servicing their debt).

L.T.V. (second largest steel company), into chapter 11.

Frontier Airlines in chapter 11.

Mexico will not pay interest on $112 billion to free world banks unless her GNP grows.

The car industry puts the carrying charge to 0%-2.9%, lowest ever, to move inventory. Now consumers will all want new low rates for goods over $1,000.

The oil and gas patch reeling from $12-16 crude. All world banks caught in this debacle. Dallas and Houston billionaires all in trouble; the Hunt brothers could lose $3 billion.

The Federal Reserve has printed 26%-30% more money this year than planned. This was done to bail out domestic and international bank problems and to keep the economy moving.

The Wall Street Journal has been a horror story for 90 days on corporate failures. More bankruptcies this year than any year since the great depression.

The U.S. trade deficit for July was $18 billion and August and September figures are expected to be worse.

The U.S. dollar is at a 6-year low re the German mark. The Japanese dollar is so strong they are buying gold at $275-300(US), (not $435, as of a week or two ago).

The U.S. dollar has collapsed 36% in 14 months.

Foreigners are picking up over 40% of our debt issues from the government at each auction so we are now hostage to their imports.

Industrial stock markets are weak and nervous worldwide.

The case for gold is building and it has now become a new currency. It is an alternative to dollars, the stock market and the banks.

Gold will now discount (because it is now on centre stage with a $100-per-oz run up in six months, further bad economic news, terrorism, bank failures, currency volatility, stock market shakeouts, further South African turmoil, inflation, etc.

Gold through $440(US) would be breaking a 6-year bear market which has been in place and started down at $800 per oz.

The golden days are here. Senior and junior gold producers will reflect the higher gold prices coming and we will see very active gold producer stock markets developing.

I look for 50,000,000-share days on the Vancouver Stock Exchange within six months in the speculative golds. I look for gold to be $500-$600 per ounce within the next nine months.

Fearing the $320 gold level would break, most gold producers have sold their gold production ahead for at least six months to a year. The Soviets and South Africa have already sold an enormous amount of gold at $390-$400. Therefore we are in a vacuum now for supply to the market.

Gold coins are becoming popular all over the world, thus a new demand is developing for an already-short supply. A. W. Applegath Albuquerque, N.M.