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Politics : Welcome to Slider's Dugout
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To: SliderOnTheBlack who wrote (2108)8/1/2006 5:31:05 PM
From: ecrire  Read Replies (1) of 50181
 
Fundemental speculation is the attempt to anticipate certain events that will likely affect the price. If you guess correctly you win. If not...well, you know, you've just joined the "herd".if, for example, you believe that China plans to disgorge a large part of its huge US$ reserves and diversify into other currencies and gold, who is to say that $640 gold is "just speculation". There are potential scenarios in this wild, unpredictable world, not under U.S. control, that can have huge financial repercussions. So, given our own domestic debt and credit problems plus world instability and violence, it seems to me the weight of probabilities still lies with higher, not lower commodity prices and gold.
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