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.

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

To: Hugh A who wrote (25919)	12/7/2002 10:05:35 AM
From: Moominoid	Read Replies (1) \| Respond to of 74559

There are two basic ways the price of gold can go up. One is a real increase due to increased demand and/or reduced supply. The arguments here are that the gold available is very small compared to the total invested savings of the public globally and therefore a small shift in favor of gold in portfolios can push the price up a lot. That of course will cause a scramble for exploration and more production something that already there were signs of in Australia. If there is a sustained shift towards gold even that and central bank gold may not be enough. 10000 tonnes of gold is about $100 billion which is one large cap company's market capitalization. The other possibility is inflation will push up the price of gold - i.e. a nominal increase. If all countries try to simultaneously devalue they will just all end up with inflation simultaneously. So the answer to your question would depend on how much this action will affect both these things. Moomin