Stephan,
By the way, Gary North of the Remnant Review is still bullish on gold.
Rightly or wrongly, it seems to me that the current glut supply of oil has been planned/manipulated/orchestrated to be so since about ten years ago to keep the price of oil down. Otherwise, the oil-rich Middle East countries would be cash-rich and can afford to buy WMD (weapons of mass destruction) from countries willing to sell to them. This, of course, is a no-no for the policemen of the world and countries fearful of being conquered/destroyed.
In the past, for whatever reason, the price of gold has often moved in lockstep with the price of oil. Now that oil is down, it is not surprising that gold is down, eh?
Many seem to forget that, to ensure the Euro dollar will debut successfully come January 1st 1999, gold has to be made to look unattractive as an investment. For this reason, some people have opined that gold may yet fall to ~$190. However, Jim Dines, of the Dines Letter, believes that when MASS FEAR/PANIC sets in some time in the future, investors will rush back to gold. Unfortunately, he does not venture to say when the rush will likely begin. So, for the time being, there will be some sorta' taunting from those who believe the market still has lotsa' legs to run higher, eh?
|
