Thanks. That makes it specific. Learned a lot on this thread today.
Do you believe that the relationship of the XAU to POG is more
direct and more predictable than to any one company? What I've
been looking for, I guess, is a barometer. If I check Kitco and
see that POG has gone up a dollar, can I then expect a corresponding
rise in XAU? If that is true, would it also be true that if I
first saw XAU and it was down, would it then be predictable that
POG must be down? Is this too simplistic? Would the fact that the
XAU is a basket of stocks smooth out the fact that individual
companies may have their share price affected by many factors other
than POG but a general rise in XAU would be dependent on POG?
One always likes to find others who share one's beliefs. I was
gratified to see that some members of this thread believe that
the real rate of inflation is not being reported. For some time
now I've been telling ad naseum to all who would listen that
the reported inflation rate is being manipulated. Has anyone
checked the basket of items that has been used over the past five
years to determine the rate of inflation? My guess is that the
items have been changed with the purpose of hiding the true inflation
rate. Meat, cheese, bread, candy bar prices can rise significantly
and the rise be obscured by adding a computer to the basket and
using the fall in computer prices to counter the rise in prices
of necessities. Read the grocery ads in a five year old newspaper
and check the prices and amounts you get for a given price. Some
inflation has been being hidden by the lowering of the size or
weight of the items being sold (cold cereal, chocolate bars, canned soup, etc). If you've got your liquor receipts from five
years ago check and see what a bottle of booze cost then and compare
it to now.
The current bitter strikes that have started to occur in Canada
aren't about people wanting to have money to buy BMW's. Between
taxes and inflation and static salaries a lot of people are being
squeezed financially. A recent report has stated that a significant
number of people are charging their groceries on credit cards and
are unable to clear the balance. At the usurious rates charged by
the credit card companies that makes those groceries very expensive
indeed.
How will this affect POG? Is the govt. in collusion with private
business the goal of which is to keep the price of gold down
because then it can be argued there is no inflation since gold is
so symbolic. You might pay twice as much for steak but gold is
at all time lows and you can buy all you want of it so see there
is no inflation. |
