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Politics : Gold and Silver Stocks and Related Commentary

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To: loantech who wrote (9263)	3/22/2005 1:29:13 PM
From: goldsheet	Read Replies (1) of 18308

Real cynical of various ratio charts, even my own. (the voices in my head tell me not to believe myself) Statistics tell me two items may be better correlated to a third item. For example, maybe there is no direct gold-to-oil relationship, so comparing them is an exercise in futility. Each may be more highly correlated to something like interest rates, bond prices, CPI, PPI, etc.. and maybe with a time lag. Effectively one might be looking at a chart of two things that really should not be compared (meaning nothing !) instead of looking at two separate charts showing the real deal. People make math errors all the time. Recently you posted somthing by Jim Sinclair that said projecting gold pirces was as simple as using a ruler, implying a linear relationship, then he misused the ruler. A 33% drop in the dollar led to a 75% rise in gold. He projected another 33% drop would take gold to $1600. I'm sorry but 430 * 1.75 = $ 750

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