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

To: TobagoJack who wrote (27769)	1/25/2003 4:04:45 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

Jay, if I was a banker, I would be enthusiastically getting into the gold business. Just as they are: <Gold expert Yu Jiahua said that the gold market opened a new channel for banks to make intermediary business and provide a potenial growth channel for banks to increase income. He said that the participation of commercial banks in gold trading not only activated the market, but also balanced the gold price. Industrial insiders said commercial banks are making preparations for individuals to participate in gold speculation.... > Note they are not holding loads of gold for their own purposes. It's to fleece the mystical Asian Aztecs many of whom are thinking Gold's Great [GG]. With the margins I was quoted by Johnson Matthey and the marketing strategy they had, it would be negligent of banks to not be in the business if they can get crowds of people to start trading. It's closely aligned with their existing business, they have the customers already in the shop, they have vaults, accounting systems, account management, legal and other skills all set up. Why on earth would they not be in the business. Heck, if I was them, I'd be minting coins, marketing gold art [pictures, sculpture and other added value styles]. I'd start selling platinum too. How much demand that will stimulate, I don't know, but it will be some. If the bid/ask spread was much less than I was quoted, I would certainly have bought some gold when I went to check it out. Especially if the other marketing aspects, security and so on were all okay. They made it too hard and expensive to move in and out. Mqurice

To: TobagoJack who wrote (27769)	1/25/2003 10:40:25 AM
From: 4figureau	Respond to of 74559

Gold Show me where the gold is being accumulated and I'll show you the next world power Richard Russell Dow Theory Letters 27 January, 2003 Gold -- The metal is in the position where traders have to whine, "It's too high, I can't buy it, I just haven't got the guts to chase it here. It's got to correct somewhere along the line -- and then I'll buy it." Yeah, right. This is the way a bull market advances, while leaving the crowd out. Only we die-hard gold bugs are making money here, only investors who believed that real intrinsic money is preferable to fiat paper that is being ground out at no cost by the Fed's printing presses. "What's wrong with the gold shares?" I'm asked, "Why aren't they surging with gold? I just ran off a chart of gold divided by HUI, the "Gold bug's" index of unhedged gold shares. From February 1987 to October 2000 gold shares outperformed the metal by a wide margin. Since October 2000 gold has outperformed gold shares. The ratio is now just about where it was in February '87 -- so that's the story. The stocks moved up first, then gold moved up, and now they're about even as they relate to each other. My guess, and this is only a guess, is that the two, gold and gold shares, will now move roughly in lock-step with each other. My advice has been to buy gold coins AND buy gold shares. There's only one bull market today -- the bull market in tangible goods led by real money -- gold. If there's only one bull market, why not get in it? Hey we are in it. Now it's only a question of when the rest of the world gets in it. Headline from today's USA Today -- "Gold Hits 5-Year High, But Glittering Prices May Tarnish Quickly." This is the kind of thinking and headline that keeps the crowd OUT of gold. Yep, gold is still in its early or accumulation phase. History tells us the flow of gold points the way to where the power is. The stronger the nation, the more gold it accumulates. Show me where the gold is being accumulated and I'll show you the next world power. 321gold.com