I want to thank you for the time spent answering my request for your thoughts concerning lax oversight by authorities concerning naked short selling and the possible confiscation in the future of our bullion coins and gold/silver producers.

Last night I was watching the 1941 movie "Western Union" depicting the frontier struggle in running a telegraph line from Omaha, Nebraska to Salt Lake City, Utah in the year 1861. During the movie I noticed an exterior western set had posted in front of a bank the exchange rate for gold at $20.67 and for silver at $1.33. Then I recalled that FDR confiscated the people's gold in 1933 at $20.67, the same price that it was 72 year earlier. Then some time following FDR revalued the Treasury's recently acquired gold plus any that they originally held higher to $35 dollars an ounce. On the "Texas two step" the people that turned in their gold lost out by about 70%. David Schectman says the law is still on the books granting the government the right to recall privately owned gold. If it happens again, we'll see first some windowing dressing concerning some or another banking problem which is sure to be coing down the pike.

I just became familiar with the two-tiered dollar currency system: one set of bills for domestic use colored peach with all types of security applications and the regular green and black ones used outside of our borders. A third of the outstanding currency circulates domestically while the remainder is used internationally. Laurence Patterson who authored the 1994 monograph "Currency Recall" forecasts the domestic style currency will be prohibited from leaving the country and not being able to be converted into other currencies. He says we are getting closer to this event and a cut in value of 50%. He also states that for people holding gold bars abroad and bullion coins domestically that they will be surprised to find that special regulations will prohibit them from profiting.

Also Mr. Petterson states that coin dealers are under a strict Treasury regulation to and must report your sales of some coins but not on others. The coin values in excess of 15% of the bullion price need not be reported. He feels that the rule is an early indication of outlawing bullion coins all together some day.

Even the recently organized Adminstrative Monetary Penalty Regime(AMP) in Canada is watching bullion transactions in the excess of $10,000. All these watchful eyes are shaping up to be a harbinger in my mind.

The History Channel had a story on Fort Knox today stating that the last images of gold were last seen in 1974. From the filming of the gold bricks that I saw, they looked way too shinny and I immediately thought they were replicas. A simple audit could prove me wrong but then again, that will never happen.