[Edit, for some reason SI doubled my OSX Questions post, therefore I will quickly open up another set of questions here]
Gold Questions--
Thread et al:
The fundamental questions on gold seem to be:
1) Is it fairly priced?
2) Is there rising demand for gold?
3) Is it of use as a currency, or simply a store of value, or simply a hedge against disaster?
4) Is it manipulated (held down) now?
One would think, at first glance, that if 9/11 and a land war in Asia can't sustain a gold rally, then what can?
Here is a section (with link) someone decided was a must-read for all investors:
"Gold and silver acted like coiled up springs when they were finally set free. It will be the same this time as well. This time however, its rise will be even more spectacular. Supply has diminished and we are running supply deficits in both gold and silver. This is without any monetary demand. The market cap of the world’s gold and silver stocks has fallen to around $35 billion. There aren’t large deposits of either metal outside the gold deposits of central banks that could satisfy investor demand."
financialsense.com
I found it pretty interesting, but had a couple of issues that others (perhaps Tomasso) could clarify. First of all, I have always heard that every ounce of gold ever produced still exists, sort of a perpetual oversupply. Second, there is practically no use for gold except for overpriced jewelry. But the author here simply posits, as truth, something called "rising demand" for gold and shrinking supply. Does anyone have a good, rational handle on this? Is he simply stating that there aren't enough gold and silver mining companies (and floated stock) to satisfy the desire to own such instruments when the plunge happens?
Kb |
