Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Maurice Winn who wrote (64701)	6/7/2005 7:09:20 PM
From: maceng2	Read Replies (1) of 74559

I suppose I am a little intrigued with the folks who go long and short gold bullion(with visible success from the comments I have read). I'm long the miners myself (not bullion), looking for a long term win. I see it as good as putting the money on the nose of some horse at the race track to win. It either wins or loses. As an initial "rule of thumb" we have Elroys comment here. Message 21302176 Historically gold has always been worth so many bags of flour. I know these guys use charts to determine if pm's are under valued or over valued, but I also wonder if they also use more primitive methods of valuation? (really) My comment would be that it took a lot of work and effort to produce a good bag of flour in Roman times. Now some guys just mash the starter button on some huge diesel powered rig, plough, spread fertilizers, seed, and harvest the crop. The crop is sorted and put into other huge machines and turned into flour. In Roman times there was A LOT more physical effort involved, and the science of getting a good yield from the crop was at an earlier development, though I expect they could have also told us plenty of good advice. Relatively speaking, along with government subsidies, the price of gold maybe is really worth a lot more relative to flour then that seen in Roman times. It depends on the price of oil (energy) too of course. However, I'm still happy I'm backing the winner in this particular race (gold versus fiat currency). Commodities will kick butt and gold will be realized as the historical true commodity that will rule the roost. Eggs will be priced in milligrams of gold. I think free range eggs will always be worth more. pb.

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