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To: BGR who wrote (37251)6/2/2000 10:35:00 AM
From: LLCF  Read Replies (1) | Respond to of 42523
 
<I don't understand. How can XAU and POG love both inflations and recessions?>

Gold likes any extreme...

DAK



To: BGR who wrote (37251)6/2/2000 10:37:00 AM
From: robnhood  Read Replies (1) | Respond to of 42523
 
I Don't understand how the SM can love both inflation, and deflation. <g> That makes us even.



To: BGR who wrote (37251)6/2/2000 10:45:00 AM
From: Rarebird  Read Replies (1) | Respond to of 42523
 
<How can XAU and POG love both inflations and recessions?>

When the Inflation Rate > than the Growth Rate, Gold surges. It makes no difference what the Inflation Rate is as long as it is greater than the Growth Rate.

Stagflation is the best environment for Gold.



To: BGR who wrote (37251)6/2/2000 11:06:00 AM
From: patron_anejo_por_favor  Read Replies (1) | Respond to of 42523
 
<<I don't understand. How can XAU and POG love both inflations and recessions?>>

Because inflation and recessions are not mutually exclusive. Recession means a declining GDP. Inflation means higher prices. No reason why we can't have both; indeed, that is exactly what we are seeing the beginnings of. Ever heard of "stagflation"? Especially in the setting of a weaker currency, it is the best environment of all for gold. It was the economic backdrop that gold was moving in in the '79-80 gold bull market.