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

To: TobagoJack who wrote (22214)	8/6/2002 6:27:04 AM
From: Muthusamy SELVARAJU	Read Replies (1) \| Respond to of 74559

Jay, If the underlying reason the Fed & co are reducing rates is because they're panicking the world is going to reverse itself into a deflationary environment, then surely, logically, it means that prices of all commodities (as well as underlying demand) will fall....if so, gold should also drop, don't you think? In addition, if Iraq invites back the inspectors, and the US is forced to accept that it does not make sense to invade Iraq, then we could have, logically, another depressant to gold price. Finally, if confidence in everything round the world drops, including on the likes of C, JPM and BOA, then surely, the least financially painful alternative for the Fed and the other central banks to do is to artifically depress the price of gold...as I believe they've been doing during the past 6 weeks. What do you think....it hurts so much to hold gold, esp for someone who entered the game, a) quite naively, and b) late. All the best, Selva