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Gold/Mining/Energy : Gold Price Monitor
GDXJ 94.04+0.6%Nov 21 4:00 PM EST

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To: Zardoz who wrote (86366)6/4/2002 9:09:31 AM
From: E. Charters  Read Replies (2) of 116764
 
How do you judge over-valuedness? Refer to the theory of efficient markets in your answer.

If you agree that the market is not efficient, is it not equally probable that at any given time, the commodity is undervalued?

I presume you are using a fundamental analysis of the commodity to arrive at your aforementioned conclusion. What historical factors have changed to make gold a commodity in oversupply (arguing that the market will percieve its high price)? In this you must show how the usage of gold related to its price.

This argument referred to of oversupply presumes that gold is an elastic commodity in demand and supply. Is this supported by classical theory? If it is not, when and why did this change?

EC<:-}
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