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Gold/Mining/Energy : Precious and Base Metal Investing

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To: russwinter who wrote (18776)	8/31/2003 5:49:15 PM
From: Silver Super Bull	Read Replies (1) of 39344

RW, Your post (18776) comparing "Dollar Based Liquidity" (DBL) and HUI is fascinating. I would like to offer a differing perspective, however. What if this move in gold is not being caused by liquidity? As I recently posted: Message 19258867 the longer-term correlation between the gold price and monetary/credit creation looks to be nonexistent. In fact, some of the strongest monetary/credit growth, during the late 90's, ended with gold acting exceedingly poorly. While I don't think anyone can exactly define why gold goes up (or down), I think perhaps we should consider that maybe "fear" is a positive driver to the current gold price increase. It wasn't so long ago (1980's) that gold reacted very positively to any type of fear/angst/uncertainty, whether it be financially-based or geo-political tension. If "fear" is a current driver of the gold price, then we could have a general stock market meltdown (or any number of potential calamities) and the gold price would most likely increase. In this scenario both your prognostications re: a liquidity-drought based upheaval in the markets and LJ's assessment of a continuation of the gold bull could naturally coexist. DB

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