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

To: yard_man who wrote (92356)	1/2/2003 11:24:03 PM
From: Real Man	Read Replies (1) \| Respond to of 116768

True. Oil and gold are going back to the ground as bombs start to drop

To: yard_man who wrote (92356)	1/3/2003 12:47:29 AM
From: E. Charters	Read Replies (1) \| Respond to of 116768

Traditionally oil drops back a bit (About 7 percent of so) when war starts but the Gulf war had a different effect. Because it was a war in an substantial oil producing region, the threat of war made the price rise substantially instead. After the major threat was over, the price rapidly bounced back to where it was previously. Gold has a different history as it has a much shorter history as a freely fluctuating commodity. There are well known theorists (Hurst) who have charted gold and the market's fluctuations due to major world events and they have concluded that the actual correlation of the market to world events is zero. It fluctuates completely independently they insist. I would say that this is not totally convincing, as inflation follows war, and this effects oil and gold price swings usually positively in a delayed action. The onset seems to affect commodity prices negatively though. The effect of war on the 2002 upswing in commodities would have to be some major to make a real difference though. I would not hold out too much hope of a major correction. EC<:-}