Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: T L Comiskey who wrote (49154)	3/29/2002 2:09:12 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 65232

gold/silver will be interesting to watch and trade personally, I wont trade shorterm moves prefer instead to gather for the storm upcoming I expect a massive storm inflation in energy sector will emerge deflation in tech and other excess areas will continue this creates a strong gradient for other parts of the world, it creates big reqmts to hedge against deflation with gold to protect fast loss of wealth for heavy energy using parts of the world, it creates big threats to cost structures from pervasive energy cost rises this too will create a need for hedging against inflation energy is the one place we do NOT want to see inflation surface because its cost must be borne throughout the entire economy but overall I see a big new change in our environmt deflation continuing inflation emerging in sectors this might create a powerful gradient effect, differential now in weather patterns, strong gradients are dangerous combined with a powerful jet stream, you get tornadoes and hurricanes in ocean systems, you get powerful eddies (interfering in yacht races) in financial markets, the jet stream is the ForEx, foreign currency exchange any changes in its pattern could result in a big storm I expect a big storm, which is building in forces now gold will benefit in such a storm now add in war tension, and you get the perfect scenario for gold we know how big storms form in nature do we know how they form in financial systems? I feel as though I am obtaining a better grasp of this difficult phenomenon the key: the US dollar any changes in trend will cause big jet stream changes I believe the dollar has lost 5% value recently versus Euro this is only the beginning of a move toward $-Euro parity Cole may think Gold Rally is fleeting I dont I think you will see many shorterm sell signals the fact that he is focused on XAU is a point of shame that is a lame index, loaded with over-hedged mining firms e.g. AmericanBarrick the better gold index is HUI, the unhedged goldbug index it is not acting quite like the goony loony stodgy XAU they need to boot Barrick and a couple others out just learned something about gold sales and hedging mining firms the big bidders for the recent Bank of England 20-ton gold sale were gold mining firms they essentially have begun to reverse and unwind their massively unprofitable forward sales hedging they are averaging 2.5 years of production in forward sales imagine that !!! gold mining firms are buying gold on the open market !!! what does that tell you ??? they are doing so in the most reliable fashion straight from the lunatic central banks, where supply is not at risk buying on the cheap, smart check the gold price index, not XAU or HUI check the chart on weekly basis for 5-7 years the downtrend is broken the flat trend is well along the uptrend is next I expect it to run for 5-10 years !!! inflation is now almost totally dismissed so was deflation in 1999 by the way, stagflation is the ideal environment for gold ideal ideal ideal in Germany they have 10% unemployment and 5% inflation they got stagflation NOW we will soon, I believe higher energy costs and slightly higher interest rates guarantee stagflation in the USA I found Germany's Bundesbank bluff in early March to sell more gold to be hilarious and very indicative of desperation they agreed in 1999 Manhattan Accord to stop selling gold in March 2002 they announced a renege on the Accord two weeks later they backpeddled why on earth would they sell gold? to buy bonds as they claimed in their pronouncement? sure, sell gold which is rising and buy bonds whose rates are rising (principal falling) very bullish for gold good luck to you go let out the tire pressure of some Mercedes you might feel better about hitting on a Republican / jim