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

To: Zardoz who wrote (86366)	6/4/2002 9:09:31 AM
From: E. Charters	Read Replies (2) \| Respond to of 116764

How do you judge over-valuedness? Refer to the theory of efficient markets in your answer. If you agree that the market is not efficient, is it not equally probable that at any given time, the commodity is undervalued? I presume you are using a fundamental analysis of the commodity to arrive at your aforementioned conclusion. What historical factors have changed to make gold a commodity in oversupply (arguing that the market will percieve its high price)? In this you must show how the usage of gold related to its price. This argument referred to of oversupply presumes that gold is an elastic commodity in demand and supply. Is this supported by classical theory? If it is not, when and why did this change? EC<:-}

To: Zardoz who wrote (86366)	6/4/2002 9:51:48 AM
From: The Vet	Read Replies (2) \| Respond to of 116764

Zardoz you make the same mistake as most of the so called market gurus. You assume that your measuring stick (the US dollar) is a finite and fixed size, not the elastic and flexible thing it really is. The BOJ is printing Yen and exchanging them for US dollars (they laughingly call this "buying" dollars). The FED is printing more dollars to replace those pulled out of the market into the BOJ computers. Nothing, not even paper changes hands, just a proliferation of computer entries. An ounce of gold hasn't changed at all; it's still an ounce of gold, but it may take a wheelbarrow full of paper to entice the holder to part with it...