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Gold/Mining/Energy : Gold Price Monitor

GDXJ 108.28

-0.9%

Dec 1 4:00 PM EST

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To: yard_man who wrote (70791)	5/30/2001 3:05:11 PM
From: ahhaha	Read Replies (1) of 116791

right now I think there is quite a bit of cooperation among the larger CBs. You believe they trust each other. They coordinate their policy actions, but only in a minor way. They've all come to realize that each country's CB must deal with its own internal state independently of what others might be doing including with respect to currency effects. When a nation runs a good economic show, they don't have to worry about what their currency is doing. But why should each marginal ounce be priced at the first ounce -- if by this you mean some historical price? I only mean in practice. If any nation used its resources to buy an ounce of gold, the next ounce would get progressively more expensive. But even if you mean the first marginal ounce, so what? That amount of gold won't be sold into the market for the very reason you mentioned -- USD is the best ever safest reserve until it isn't -- when it isn't how much gold is necessary as a reserve?? Oh, now you don't believe they trust each other. The USD would stop being safe if the US pursued inflationary policies. What does this mean? It means when a nation's people work they generate more value over time than is represented by the average value of gold of the entire world's gold supply. Are not financial powers utlimately limited by the economic resources and finally, the natural resources available to a country? Economic resources need not be predicated on natural resources. The natural resource of India is their talented and large population. The Hindus could generate enough value in one year to buy the entire world's load of gold. Financial power can't be more than an extension of fundamental economic power can it? What is fundamental economic power? Gold is worth only what someone will give you for it, and circumstances may be such that you'd trade a loaf of bread for an ounce. Financial power is intangible because what counts is what people can do. They don't need anything material to do things. The only value there is comes from what people are willing to do. What was the cost of building the pyramids of Egypt? Nothing. What is the replacement cost? More than all the gold on the planet, yet it is only a pile of mud.

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