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

To: Edmund Lee who wrote (65169)	3/8/2001 7:16:04 PM
From: russwinter	Read Replies (1) \| Respond to of 116753

Your post is the mother lode. In short hand it means that carry trades accelerate gold supply, and create disequilibrium (price overshoots). It is therefore an excess credit creation scheme. When the carry trade unwinds (which I firmly believe is in process)it decelerates supply and in fact accelerates demand. The end result is a monster price move UP. And that's what is going to happen. Judgement Day, I love it! By the way, your link source discusses the Yen carry trade, which IMO will have a similar fate. A good portfolio would be weighted 70% gold and PM, 15% energy, 5% base metals, and 10% Japanese equities, especially small caps.