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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Alex who wrote (35447)	6/16/1999 11:22:00 AM
From: hunchback	Read Replies (1) \| Respond to of 116764

Interesting article. I'm relaxed (with 50% cash) : ) All That Glitters Is Not Gold The editorial page writers of The Wall Street Journal has been so pre-occupied with partisan politics that it took them almost a full month to register a protest against the FOMC's May 18 tightening bias. And the protest in the June 15 edition of The Journal was not as vociferous as others. In fact, the The Journal allowed as how inflation expectations, as derived from the Treasury securities market, were on the rise - just as we wrote I our Monday commentary. But The Journal's editorial staff doesn't put much stock in the inflation signal being sent by crude oil prices because the supply of crude is being purposely restricted by OPEC. Yet it has much faith in inflation signal being sent by gold prices despite that the "floating" supply of it is being purposely augmented by the Bank of England and other "official" holders. Well, all that glitters is not gold. Recently it has been common metals such as aluminum and scrap steel. As the chart below shows, as the price of gold has been falling of late, the prices of industrial metals, as represented by the Journal of Commerce metals sub-index, which is devoid of so-called precious metals, has been on the rise. Maybe there is some cartel withholding the supply of scrap steel, but I am not aware of it. Don't get me wrong. The rise in the JOC industrial metals price index hardly signals hyperinflation. But I attach a lot more significance to its movement up than I do to movement down in gold prices. ntrs.com hunchback