Millenium Gold:
) Jul 02, 20:20 ( Gold Eagle Forum: July 02, 16:00 )
There is not one iota of doubt gold is manipulated. But all manipulations eventually come to an end. Gold today is like a An ocean buoy, being pulled ever deeper to unfathomable depths. Consequently, the buoyancy force increases exponentially with each foot of water pressure. Therefore, once the exogenous forces (i.e. not supply/demand dynamics) stop their downward
pressure, the ocean buoy at depth becomes literally a ballistic missile being propelled from a nuclear submarine with near atomic propulsion behind it.
To actually feel the meaning of my analogy, take an inflated inner-tube to a body of water well above your head. Try to force is to the bottom (pool, lake, ocean, whatever). The upward force accelerates beyond belief with each succeeding foot of depth. So will it be with gold.
The most perfect preview of what I describe is what happened in the 1970s. Look at a chart - it went from $35 to $850 - which would ordinarily translate to gold going ballistic from $260 to $6,300. However, in the 1970s exogenous forces did NOT pull to today's depths. Consequently, gold has so much more propulsion power stored and ready to let loose.
Two other factors will provide gold additional boosting power: Y2K and an imminent Bear Market in common stocks - WORLDWIDE. The heights to which gold can possibly orbit are mind-boggling, unbelievable, which only happens once a century.
Always remember the amount of gold in the world is finite! Total existing supplies increase a mere 2% annually. Interestingly, this is approximately what world population increases per annum. HOWEVER, well less than one person in every 2,000 owns any gold at all. Just imagine the effect on gold's price when global populations begin to focus again upon the millennial standard of value.
All the world's gold ever produced and still in existence is about 130,000 tonnes, equivalent to a little more than 4 billion ounces - and at today's market value equal to a smidgen more than $1 TRILLION (US). To the average man that sounds a lot. But consider $1.5 TRILLION (US) of foreign currency TRADES DAILY IN THE FOREX MARKETS!!!!!!!!!!!!!!!! We are talking 'chicken-feed' money. Furthermore, there is not even enough gold to distribute one solitary ounce to the world's total population of 5 billion PLUS.
To say gold's eventual rise will be meteoric is to make the understatement of the decade. Those hapless souls waiting and searching for a bottom are foolishishly ignorant of gold's history and current market forces. There will be little to no chance of 'climbing on board' when gold makes it move. It is tantamount to the blissfully naïve who buy no accident, fire or health insurance until they are "sure" something is going to happen!
What is the sage saying, "Ignorance is bliss…?"
vronsky
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