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

To: d:oug who wrote (46071)	12/17/1999 4:39:00 AM
From: Zardoz	Read Replies (4) \| Respond to of 116756

As I stand upon the mountain, I over looked the land below. And there was Doug, hitting a stick on ever bush, shrub and tree. Trying in vain to knock a snake {AKA the devil} loose. I guess he didn't know that they where extinct years earlier. Consider this: Take $100 at 150,000 times per second, 24 hours a day, 7 days a week. Send that little bill around the world at the speed of light. And you are close to the daily currencies trades {$1.3T}. And all that is a zero sum game. Now if we consider the Fair Value of gold to be $300/Oz {or 3 $100 bills} how many would we need? 4.32 Billion TOz. Daily. {134,360 Tones} So what does that have to do with the price of Gold? Very little. Now consider the effect of inflation, and growth has on money. Gold as we know has no growth, no inflation, no yield, no policies, no politics, and no borders. But this is also the main reason why GOLD can suffer. Consider the plight of gold against only inflation and growth. %CH(POG) = K[(Inflation%) - (Growth%)] K being some undiscovered constant As long as Growth outpaces inflation, the negative pressures will remain on gold. But this is based solely upon the US dollar, and the US economy. But not all economies grow as fast as the USA has. So consider the cash inflows into USA, which would push the US dollar higher. To prevent a rapid appreciation of the US currency Greenspan {whom this thread does not give enough credit to} will cause monetary inflation by increasing M2 supplies. This in retrospect also aids the growth factor, while nearly eliminating the inflation rate. But true monetary inflation masks the real inflation rate. And that pushes the M3 bubble out into the future. So when M2 is applied into the system, the monetary base gets wider. No longer are you competing $450 gold, at $1500 Billion dollars, but $300 gold at $2400 billion base. This is because the economy has growth, and gold has none. Money is what is the biggest nail to gold. Gold just can compete. That does not make gold worthless, but does mean that as a cyclical, it should be traded, whether on the upside or the downside. But not based on history. Axioms that compare gold to history are flawed. How can you suggest $2000/TOz without a full understanding of the elements, and what can affect it. And this BY NO MEANS is a complete solution, but this is what GATA has as its biggest enemy, truth. And that is Hutch's agenda. Now consider a car: At one time they had no brakes, windshields, transmissions, doors, fenders, mufflers, radiators, air bags, seat belts...etc. So with the growth of the CAR threw history, how come it's cheaper to buy a car now, then it was in 1900 {using inflationary dollars} Technology? Yes Doug, some day it may well be possible to have the blind see. The genetic disease cured before birth, and who knows, maybe we can gene splice some of those snakes for you to knock out of the bush. Hutch PS: This is GATA's flaw, linear thinking.