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Gold/Mining/Energy : Gold Price Monitor
GDXJ 143.83-4.4%Jan 29 4:00 PM EST

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To: long-gone who wrote (61453)11/28/2000 6:33:56 PM
From: lorne  Read Replies (2) of 116931
 
Understanding gold as an investment
2000/11/27 12:00 PM EST
Part I: Understanding gold & how to make a profit from it
Understanding the gold price, why it is where it is, why it declined by 40% from February 1996 to August 1999, why the gold industry got slaughtered and why the hedge funds made out like bandits, requires us to look at several aspects of gold and the gold market.

Part II: The physical market
For years gold bugs and mining companies have been predicting higher gold prices on the basis of the supply deficit in the gold market.

Part III: The meaning of derivatives: futures and options
The physical gold market is less than 2% of the size of the derivatives market. The annual supply deficit is only about 0.1% of the total market and central bank sales, which everyone is blaming for the demise of the gold price, are only 0.12% of the gold market

Part IV: Why the US dollar has the gold price on a tight leash
The gold price is dependent on the US dollar exchange rate which is determined by the amount of net foreign investment relative to the trade deficit.

Part V: The Real Price of Gold
Why worry about small fluctuations in the gold price when we can profit from the substantial potential increase in the US dollar price of gold?

Part VI: Investing in gold in the "New Era"
The same circumstances that caused gold to decline by 40% are responsible for deluding millions of investors to believe in a "New Era".

Full story >>> And Links to above topics.
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