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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: AC Flyer who wrote (14832)	2/11/2002 1:31:57 PM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hi Mike, <<The $64,000 question is will some exogenous event break the strong causal relationship between average production cost and POG that has existed for more than a decade. I can not predict the answer to this question. Others can (or think they can), apparently. We shall see.>> A decade of cost tracking performance, if indeed as claimed by some, manipulated by greater powers, would not be indicative of anything other than manipulation. OTOH, I believe (no data at hand) that gold price tracks its cost since quite ancient times (“Power of Gold” by Peter L Bernstein?). I also believe (per World Gold Council:0) that a man’s suit in sixteenth century England costed the equivalent of one ounce of gold, and it the same ounce buys roughly (forget the New Ec brand value) the same today. So, as it says here on my owners manual, gold is “long term store of value, asset of last resort, highly liquid, and an asset diversifier”. The photos in my owner’s manual are quite attractive as well, but only show bullions, bars, wafers, and not land, girls, boats, and other objects of desire. The world Gold Council can use a lesson in marketing. On exogenous events, I do not count on such events to increase my NAV, as they would most likely lower the V, only cushioned by platinum, gold and possibly mining share holdings. Chugs, Jay