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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: abuelita who wrote (19456)	5/21/2003 10:55:44 PM
From: Jim Willie CB	Respond to of 89467

"Gold guru review - the $700 bullpen" by Tim Wood [will you get serious for just one minute, dirty old woman?] mips1.net two clips: Back in April, van Eeden was expecting the dollar to give up a further 50% which “would free the dollar denominated gold price to find its way back towards its true value of $699 an ounce (as of 2002).” That was a very good forecast given what has happened with the dollar and gold in the last few days. From now on, International Speculator says there are only two options. Either gold is headed to $700 an ounce or the US money supply is going to shrink 50%. The latter is impossible which is why the newsletter is betting on a sharp increase in the gold price. >>>>>>> “The major decline in the gold price did not occur because of central bank sales or producer hedging, as many people believe. Instead, a proper analysis of the gold market, and an understanding of foreign exchange markets with the role played by derivatives, sheds light on the real factors that determine the gold price.” More than $100 an ounce later, van Eeden told subscribers recently that it wasn’t too late to get positioned. He expects gold to “at least” double in coming years and possibly triple within five years. What is gold really worth? “Two factors always influence the relative value of gold in any currency. The first is the increase in the amount of currency (inflation of dollars) and the second is the increase in the amount of gold (inflation of gold),” he writes. When dollar supply rises, the value of the currency diminishes and vice versa. Likewise for gold. Van Eeden breaks this relationship down into a formula reflecting that changes in the dollar gold price, over time, will be proportionate to dollar inflation and inversely proportional to gold inflation. / jim