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


To: Maurice Winn who wrote (14853)2/11/2002 2:10:34 AM
From: Moominoid  Respond to of 74559
 
Yes this is a problem - da cheif thinks gold is going up because there will be a huge inflationary boom... while bears think gold is going up because people think it will save them from deflation..... But any commodity like this will see new entrants to the industry and cranked up production pushing up supply if a price rise is sustained, pushing down the price. Unless demand increase is so massive that production costs are pushed up because worse deposits have to be mined etc. For example - if every government switched to using gold for money :) The alternative is inflation raises production costs.... This unfortunately is the economics of commodity production.... a bad business to be in on the whole.

I'm not looking to hold gold forever, but think it could boom significantly...



To: Maurice Winn who wrote (14853)2/11/2002 12:54:22 PM
From: TobagoJack  Read Replies (2) | Respond to of 74559
 
Hi Maurice, <<Is it going to be an inflationary deflation?>>

It is both, of services and of assets, now, and then later, a sort of grinding, chewing action, leaving foam, hide, and two horns, garnished with some hoaf material:0)

Message 16212324

“Now, should the cataclysm be unobstructed, a new dawn may arrive sooner. We must lead the village idiots to the volcanic abyss of Inflation or the black hole of Deflation, to be sacrificed to the gods of work, thrift, family and savings. I am being optimistic and am of course assuming that all the market noise and propaganda smoke is not in fact camouflaging an inflection point connecting Silicon Glory to an as yet unknown “next abracadabra”, as the Rust Belt was once transformed into Silicon Glory but accompanied by much dying anguish and birthing pain.”

Chugs, Jay