<<These guys in the press don't know anything about gold except that you supposedly buy it during a war>>
That's a bit of a vast generalization, dontcha think? Granted, most of the financial press are complete meatheads (with a few exceptions, including Gretchen Mortgenson of the NY Times, and Tom Calandra of MarketWatch, who has been bullish on gold since before most posters here and RIGHT from the bottom). So you disagree we don't have a war premium? And no one has anticipated the outbreak of war in the gold futures market? The Indians, Chinese, Japanese who are buying it hand over fist are buying it for ALL KINDS of reasons, including uncertainty about the outcome of the Iraq-conflict-to-be. As far as the Arabs go, you think they're gonna wait till the price gets bid up first BEFORE they buy? Or have they been buying all along up until now, trying to hedge dollar holdings. Not at all a simple equation, but there is absolutely some premium built in...if the "war" comes to a quick resolution, it will move out just as quickly (and provide a GREAT buying opportunity, since all the fundamental reasons related to domestic US economic weakness, excessive debt, and paucity of alternative investments still exist). |
