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Strategies & Market Trends : Ride the Tiger with CD

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To: pogohere who wrote (90072)	8/29/2007 7:23:44 PM
From: koan	Read Replies (1) of 313360

That is an interesting article worthy of discussion, and I am not necessarily disagreeing with the fellow on everthing, just his main thesis is overstated I believe. Let me preface my comments by saying I am not saying other factors do not affect the rise or fall in gold. For instance I have made it clear, general fear used to be a huge factor in moving gold. Also, inflation will certainly move gold. Also, we do not know to what extent (if any) government was involved in keeping gold steady and low. It is a lot easier to control a few million dollars in gold (to calm the markets) than billions and trillions in currencies and bonds. Government-s? may have been working to keep everything looking steady during the late 80's an early 90's?? But lets go back and look at that gold/dollar chart carefully (GREAT CHART!!everyone should look at it!). Here is my interpretation for what its worth-lol. 1) 73 to 78: dollar was steady and gold went straight up, but remember gold was rising from an artificially low price fixed by government for many years during the II world war, that Nixon let float because it was artificially low (after we lost 1/2 our gold at Fort Knox to other countries in foreign exchange). 2)78 to 80: we all know what happened there. Gold rose with the dollar because of inflation. Gold rose because of inflation and The dollar rose because of high interest rates used to quell inflation. So in that instance they did rise together. 3) 81 to 83: dollar rose gold fell! 4) 84 to 88: dollar fell sharply and gold had a mini bull market from 85 to 87 where I got very lucky (as I was broke-lol) and made a ton of money buying Pegasus wts for .30 and they went to $5.25. Gold barely touched $500 in 87, silver touched $11 and fell back to $9 in 15 minutes-lol. But we had a hell of a bull market in mining stocks. Maybe better than what we have seen so far on that little jag up in gold. 5)88 to 98: pretty steady in both gold and the dollar (this is where I wonder about governement interference??). 6) 99 to 02: dollar rose a bit and gold fell a bit. 7) 02 to present: DOLLAR STRAIGHT DOWN AND GOLD STRAIGHT UP. I have read the inverse correlation was/is 92%?/ Cheers,

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