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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (201824)	11/3/2002 11:23:42 AM
From: Zeev Hed	Respond to of 436258

There have been many attempts, and when the "tension" between the market price and the real price gets too large, another explosion may happen. For that you need to have the cost of gold production going up sharply (curtailing supply), right now we are in a secular trend where the cost of producing gold has gone down due to technological innovation and there is a good balance between supply and demand. As long as there is over capacity (and not just in gold) around the world, inflation will probably be subdued. Real inflation (and thus a new higher cost of gold production will change all pricing, including that of gold. I just do not see that as an "imminent" case. The writer was trying to speculate that next year 6000 tonnes of gold demand will materialize from thin air, and I cannot see any rationale in that assumption. The main demand for gold is still jewelry, and that is not something that takes off during lengthy periods of economic uncertainties. Zeev