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

To: E. Charters who wrote (86367)	6/4/2002 9:25:54 AM
From: Zardoz	Read Replies (1) \| Respond to of 116764

The Efficient market theory does not have over valuations. You know that!!! Fundamental valuation can be encompassed on any commodity, equity or investment instrument for that matter based on prevailing market price, whilst taking into considerations the secondary variables that can cause effects within the investment. Such thinks are common such as supply-demand. But the majour secondary for such instruments as gold and bonds; are monetary supplies, inflation, growth...etc. Gold is not an elastic commodity is constrained within ranges around fixed valuations. It is out of its steady state conditions and has been for three weeks. That suggests the chaotic nature of GOLD at this time is not driven by anything like supply-demand, and that it will need to reinstate its ranges. Those on the Gata camp will say:" it's due to hedges, conspiracy etc" but it aint. Since actions of hedging only moves the supply-demand curves, and distorts future prices via lease rates. The silence about gold lease rates should be suggesting to you volumes of information. The hedgers are likely adding to the swap options exchanges as we write, based on gold finding it's equilibrium vis-à-vis the US dollar soon.