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To: Oeconomicus who wrote (143146)	6/18/2002 9:53:28 PM
From: GST	Read Replies (1) \| Respond to of 164684

"Your basis for being bullish on gold is no more sound than that of a bubblonian buying Cisco" That is correct -- except for the fact that there are these people out there who look like they are increasing their desire to own gold while the existing supply is already pre-sold. Miners and speculators will be forced to cover a large short position. The supply/demand balance for gold looks favorable and has nothing to do with any metric concerning gold itself -- other than it is positional. Tech stocks were only positional so long as supply was constrained -- the IPO market wrecked the supply shortage and the bubble burst.

To: Oeconomicus who wrote (143146)	6/18/2002 10:43:31 PM
From: GST	Respond to of 164684

"Are you actually suggesting that fundamentals matter for real businesses and the US Dollar, but not for this one commodity?" You were not here (amzn thread) during the manic peak of the bubble. My position then was the same then as it is now -- that as unbelievable as it might sound, tech investors would end up completely abandoning tech stocks and would instead buy gold stocks because they were the same class of asset -- a class of asset that has nothing to do with "fundamentals" in the sense implied by your note. I do not defend gold for one second as an meaningful investment -- neither were tech stocks for several years. Tech stocks have not yet declined to where fundamentals dictate, and a few slow learners are dying to jump on a tech bull market that is likely not coming. The smart tech investors saw tech stocks for what they were and dumped them when they stopped going up. Eventually they will dump gold stocks -- but don't bet on that happening any time soon.