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Politics : Gold and Silver Stocks and Related Commentary

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To: Bearcatbob who wrote (14410)6/18/2005 11:24:11 AM
From: tyc:>  Read Replies (2) of 18308
 
>>Markets are cyclical

I'm not sure I understand your point. We were talking about currencies. I suggested that there is nothing "cyclical" about the fall in value of currencies; the fall in value of currencies (i.e rising prices) is "situation normal".

Historically the price of gold has risen from a "controlled" price of $35 per ounce. It will continue to rise as the value of currencies declines. But will it increase more than other asset classes ?

Let me append my favourite chart showing relative strength of gold and the S&P 500 over the past few years. It illustrates the cyclicality you speak about. Currently gold does appear to be in a phase of outperforming stocks. Is that your meaning ?

stockcharts.com[w,a]dallnnay[de][pb50!d50,2!i!f]&pref=G
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