Hi Selva, <<mysterious stock market rise and gold's decline>>
Do not go ‘black helicopter’ on me, my friend:0)
Actually, to be Jay, I was surprised this morning when seeing the score of Nasdaq, DJIA and gold, since the last thing I remembered before sleeping was DJIA down 120 points, and gold up USD 1.
But, then again, I was surprised at how Korea beat Spain in World Cup. Football is a complicated game that at times borders on dirty.
<<I wonder if the powers of the G8 countries could get together to block any uncontrolled rise in the price of gold, say to usd 330>>
… I believe THEY have been doing exactly that, and may yet succeed in ending 4,000 years of monetary history, purge all bank vaults of gold, take the precious out of precious metal, and printing the world to wealth, invalidate all economic texts, and make the Nobel Prize in the dismal science obsolete.
I also believe THEY might fail, to the tune of 5-10% probability.
<<Since gold is held by several G8 central banks, could they not get together with the US and do something together to get the price back down to usd 300 or below, esp since retail demand for gold is in fact decreasing>>
… I believe retail demand for gold may completely disappear for all practical purpose if gold hits a price of USD 68. On the upside, demand may pick up should gold hit USD 6,800. Life is like that.
<<I worry that the fundamentals in Europe right now can barely support the Euro at 0.97 and whether a sustained rise to say, parity and beyond is going to stick>>
… Difficult to say about currencies, at the margin, but I know the wooden homes without view in the US are over-valued relative to stone houses with ocean view in Europe, and same for hamburgers. So, yes, we may pierce parity, and rise 40% beyond that, unless we do not. In the mean nasty time, parity seems fairly certain, unless above mentioned fight over gold price is won by G7 central banks, and US-centric economic development remains in place.
The simultaneous equation of Abracadabra is hard to call correctly, because there are way too many independent and dependent variables and even more solutions to the equation.
Chugs, Jay |
