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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (27601)1/21/2003 12:39:33 AM
From: energyplay  Read Replies (1) of 74559
 
One point on the run up of gold - I think that war is not the ultimate driver, but inflation, which may occur later after deflation is reverse.

There are a number of studies that show that inflation in prices tends to show up 6 months to 3 years after excessive money creation.

This could mean that we will see a minor peak in gold, maybe in the $450-500 range, driven by Iraq, then a slow, choppy decline because of lack of price action and apparent deflation. The over $1000 / oz stuff will require the printing of a lot more money, and that will take some time, and has just started.
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