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AMZN 227.35+0.3%Dec 19 9:30 AM EST

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To: re3 who wrote (107105)8/13/2000 11:50:09 PM
From: Glenn D. Rudolph  Read Replies (1) of 164684
 
Glenn I read in a gold newsletter that this time frame (aug / sept) often sees gold rallying
partially because jewellers replenish for the holiday period.

Do you have any comments on the above ? is this significant in your opinion ? gold did rally
last year in september, but maybe it had little or nothing to do with the above. anyway i
should shut up and let you answer !!!


Ike,

The consumption of gold by the jewelry industry is so small compared to the overall supply it has no affect from what I read. I do not recall what the world economic situation was last fall but possibly the rise may have been due to a fear of inflation. Gold does not appear to be the inflation hedge it use to be but it does rise a bit when there are inflation fears.

The price of diamonds of higher quality typically rise about now. The artificial cap on the quantity of rough is the culprit. The other culprit is the demand exceeds the supply available from quality diamond cutters.

Glenn
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