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

To: Alan Whirlwind who wrote (49683)	2/27/2000 10:33:00 AM
From: Hawkmoon	Read Replies (3) \| Respond to of 116764

Richard, Not to be rude ... but you have spent all this time out here arguing the case for gold, but apparently haven't learned the lessons that others, like Hutch, have taught. Gold is dead until we have fears of hyper-inflation (such as during the '80s), or a major global catrastrophe or war. But we aren't seeing hyper-inflation Richard. We are seeing such growth of productivity and demand that Greenspan is running scared and hell-bent on pulling the punch bowel away just as we get the party started. So as Greenspan hikes rates in order to try to control the stock market, he will slow the economy (or destroy its forward momentum in the process and thrust us into an induced recession). And the slower the economy becomes, the less demand you'll see, and thus even greater deflation of prices, NOT INFLATION (because that technological productivity won't go away for some time). That will leave gold nowhere to go but down. There are three major problems with this stock market that Greenspan seems to ignore. The first is the lack of credible and "safe" worldwide investment markets, the second is that many nation are struggling to restructure and create an enviroment favorable to investment. And the third, and I think the most important, is the overabundance of mutual funds, each focused on annual gains (the taxes for which they pass on to the investor every year), and who seek to invest in only the most liquid stocks so they hope they will be able to have an exit strategy. In effect, they are hedge funds with speculative trading activities and turnover, without the ability to hedge their bets through shorting. Do yourself a favor Richard. Quit focusing on gold so much and focus on the Bank stocks. By this summer, AG will release the pressure on interest rates because of the upcoming presidential election. And the first sector that will profit will be the US banks which have been pummeled because of their primarily bond-oriented portfolios. That's the strategy I have for when the internet/Nasdaq bubble gets pricker in late March or April. Regards, Ron