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Gold/Mining/Energy : Precious and Base Metal Investing
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To: LLCF who wrote (9953)4/20/2003 2:08:20 PM
From: austrieconomist  Read Replies (1) of 39344
 
"if in the past the equity markets are any guide, one would expect POG and the equities to have made a massive move ahead by the time anything is officially announced."

I applaud your instincts, that's the way markets are supposed to work, but I disagree with this position based upon what I have actually seen in the marketplace. What the Federal Reserve is doing is seldom officially announced. No bell goes off. Did you see much commentary anywhere when the Fed WAS goosing reserves measured by MZM by a 20% rate in 2000/2001? Not only was there no commentary when it began but there was no commentary in the 14th consecutive month of such action. Also, this action in money supply is just one factor, albeit very important when it comes to prices of basic materials, and an investor does need to place it into the mix of everything that is going on. However, looking back, one could have done worse than start investing in gold and gold stocks when MZM first started taking off in November, 2000. Thinking about backing off such stocks and building cash reserves when MZM began to diminish after January, 2002 would also not have been a bad overall investment allocation decision. The kick in the gold price at the end of year 2002 is looking more and more like a war related reaction.
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