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

To: Bobby Yellin who wrote (41181)	9/27/1999 7:25:00 PM
From: long-gone	Read Replies (2) \| Respond to of 116927

<<please post the url re alex's great find please paste that letter again please -post what you want to but I think you denigrate this thread by your flagrant quips :-) >> NO, to all requests.

To: Bobby Yellin who wrote (41181)	9/27/1999 7:54:00 PM
From: long-gone	Respond to of 116927

SPECULATING ABOUT THE NEXT BULL MARKET FOR GOLD Introduction Inflation is a monetary phenomenon. Prices for everything, including gold, increase over the long run because modern currencies weaken over time. Therefore, this article will examine the price of gold (POG) in relation to the U.S. money supply for the past half century, and draw some conclusions about POG in a future bull market. To keep it simple, the article uses monthly figures for the Currency Component of U.S. Money Stock, obtained at economagic.com . Monthly closing prices for gold are courtesy of Daan Joubert. Setting the Stage: the 1950s and 1960s At the end of 1950, U.S. currency outstanding was $25 billion, and there were 652 million ounces of Treasury gold, resulting in $38 in currency outstanding for every ounce of gold in the U.S. Treasury. This provided virtually a one to one relationship between official POG ($35/oz) and currency outstanding per ounce. The table below shows what happened to currency outstanding and Treasury gold over the two decades from 1950 to 1970. During this period currency doubled to $49.5 billion, while Treasury gold declined to 314 million ounces. This resulted in $158 currency outstanding per ounce, a figure four times that of 1950. This profound weakening of the dollar during the 1950s and 1960s lay the foundation for the great gold bull market of the 1970s.(cont) gold-eagle.com