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

To: Bobby Yellin who wrote (37255)	7/17/1999 10:47:00 AM
From: m jensen	Read Replies (1) \| Respond to of 116764

>If there is no inflation why do the lawmakers need a raise?< Morgy considering Gold was worth about $280 in 1979 we really need not look further to explain this extreme distortion other than, the anti-gold propaganda of the past 3 years. Since it cannot be blamed on the absence of inflation as the numbers are clear, there is a growing demand for gold and coincidently the physical deficit is "growing" as well, despite low inflation! Back in the 76-80 rally total gold inventories (including Central Banks reserves) plus the total market capitalization of all the gold mining companies in the world was near parallel with the US equity markets albeit slightly below. Today however while the capitilization of the gold & gold mining companies has risen to about 1 trillion from 850 billion in 76-80 the US equity market cap has soared to exceed $11 trillion. This has created a major distortion that will be repaired. While we continue to watch junior miners with several million ounces in the ground selling for a mere $5 per ounce and less. The producers now closing mines that are operating above the current POG this cannot last forever. Incidently if gold was $280 in 1979 where should it be today when inflation is accounted for, need we look any further? westegg.com Enter 280, 1979, 1998 then submit. Like the thread says better 5yrs early than a day late, although maybe just maybe we can drop about 4yrs from this catchy little phrase. Considering there is only 4.3 billion ounces of gold out there with increasing supply running at about 1/5 to the Us dollar year to year. It's gonna be like 2 carp going after the same piece of corn. Fishin time Mike