In a recent issue of the London Financial Times, the headlines of the business section read, "Gold rush hits Japan as savers seek out havens". This gold rush by a country that is in a depressed state has been caused by the failing bank system in a country that once had six of the ten largest banks in the world. During 2001, over fifty-five banks went under and caused many savers and clients to begin a shift into gold. Japan has not been willing to write off bad debt and also their trial into derivative investing like American banks did not work out. What capital is left by savers in Japan is causing a gold rush that will accelerate during 2002 and is one that will not disappear. Americans should also be watching the derivative situation at American banks. Chase Manhattan and the Morgan Bank have nearly $30 trillion in derivatives making up over 200% of equity at Chase and over 350% at Morgan. Certainly with derivatives helping to bring down Enron and the continuing talk about Ford Motor and Xerox, indicators are pointing toward a strong year for gold.

PRICE FIXING
The GATA lawsuit against the United States Federal Reserve and Treasury for price fixing has been proven. On January 7, 2002, GATA posted its evidence on their website at www.gata.org and also via a mailing list at http://groups.yahoo.com/group/gata. This incredibly "hard read" contains a lot of information that was discovered in our government's reports and footnotes. These maneuvers by our government are quite alarming - especially when it was proven that the U.S. sold $20 billion of gold to Germany and that these two governments intervened in the gold market to have its price escalate both up and down. This article proves without a doubt that gold was sold without public knowledge or the knowledge of Congress. Each of you should contact your Congressman and Senators about this incredible story that probably will stop a lot of forward selling in gold and will eventually send gold back to a free market. As you posture yourself for this, know exactly what balance you desire between physical gold and gold shares that have risen quite dramatically since September and should have another great year.

RARE GOLD COINS
One of the more shocking developments in the gold world has been that Blanchard and Company of New Orleans has quit selling gold bullion products and turned their attention to rare coins. This company, one of the most advertised companies in the Wall Street Journal for over twenty-five years, has always sold gold with vigor for diversification and an asset that is not backed by anyone's debt. Their change in policy to sell the rare coins will definitely have an impact and in our opinion will drive prices up. They have hundreds of thousands of names and very good marketers who will call to promote the rare coins. For instance, one rare coin rose over 40% last year with very little fanfare. We believe rare coins offer tremendous upside potential and with our 5% markup on rare coins (as compared to between 15% to 40% by most dealers), our clients should enjoy excellent opportunities for profits in the coming years. As we begin selling these rare coins, we will keep you posted through our e-mail updates regarding changes in bid prices.

QUICKLY ON THE EURO
The Euro has now traded physically for six weeks and has fallen back after a brief rally initially. The Euro desperately needs England to join to make the European community the largest economy in the world. Until there is settlement by OPEC as to whether they will be paid in dollars or EURO's, expect the dollar to remain stronger than most people might have you believe. Ultimately, England will join the European community and the EURO will partially be backed by gold. This is the thought of most European economists; but until then, I believe there will be a short rally by the EURO, with the dollar and EURO trading in a narrow range.

WEDNESDAY CLOSING
Beginning on March 6, 2002, we will close on Wednesdays. As our staff is now working part time, we believe it is better to close on Wednesday rather than hire temporary help. We are trying out closing on Wednesdays during the months of March and April and we'll see how this works. You will still be able to leave us messages on our voice mail during the business day on Wednesday, so expect your call to be returned on Thursday. If leaving a message, please be sure to leave us the time zone you are calling from.

NEXT MONTH
Our next newsletter will feature our semi-annual tangible asset update. We will cover the areas of gold, silver, platinum, rare coins, diamonds, colored gemstones, and historical documents. Also, we are proud to announce that my radio show will once again be featured on oneplace.com beginning on March 8th. You can access the radio show through our website at www.turamali.com or www.oneplace.com. Until next month, please feel free to contact me whenever I can be of service.