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

To: Rarebird who wrote (37267)	7/17/1999 1:34:00 PM
From: Crimson Ghost	Read Replies (2) \| Respond to of 116764

Rarebird: There is little doubt that gold would have experienced a severe bear market even without any manipulation. The rise of the US to a position of global hegemony and the resultant boom in financial assets and investor confidence would have assured that. That said, the war on gold conducted by the powers that be has made a bad situation much worse. The primary weapon in this war is cheap gold loans to short sellers -- not CB sales which probably are less these days than they were in the 1970s. The 1970s gold bull was strong enough to pretty much ignore official attempts to suppress the price -- primarily via actual or threatened sales. But such intervention is far more effective in a bear market such as we have had in the 1990s. And the force of the establishment's attack on gold is vastly more powerful today because of the explosive growth of the gold derivative market. But just as the vast growth of cheap CB gold lending has made the yellow bear much worse than it would other wise have been, it will make the inevitable rebound much more powerful when it finally does occur. As Newton said, "for every action, there is an equal and opposite reaction" As regards Yardeni, there is little doubt that Y2K, the decline in the price of computing power, and the explosive growth of the internet are indeed deflationary. But these are not the whole picture; not by a long shot in an economy where wages and salaries account for 70% of the cost of production. The huge growth in global money supply and credit in recent years will more than offset any deflationary impact from Y2K -- unless Y2K turns out to be much more severe than most experts expect. Could happen, but I doubt it.