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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (4377)	1/4/2004 10:50:42 PM
From: philv	Read Replies (1) \| Respond to of 110194

Gold vs. US dollar: A few posts back, reference was made to the nominal POG of about $350. and Russ's equally persuasive reasoning why this may indeed be the "natural" price. (I hope that this categorization is somewhat accurate) However, if the US dollar is dropping relative to other currencies, this figure of $350 may be far too low. The price of Gold has barely budged in European eyes, and as far as the South Africans are concerned, the price of gold has dropped dramatically. The Saudis have a similar reaction now concerning the price of oil. They have now ratcheted up their expectation because of the drop in the value of the U.S. dollar. Only those poor countries who have experienced a fall in their currency (South America comes to mind) see any great benefit in holding gold. So, the further the dollar drops, the higher the price of gold. It could be argued that at its present price, the POG is undervalued.

To: Crimson Ghost who wrote (4377)	1/4/2004 10:58:15 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

I will tell you this. Gold is up on those comments. $418 Do you believe me now when I say they don't give a rat's ass about gold? M

To: Crimson Ghost who wrote (4377)	1/4/2004 11:13:06 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Dollar Falls to Record Against Euro After Bernanke's Comments The dollar dropped to a record low against the euro in Asia after Federal Reserve Governor Ben S. Bernanke said the risk of a dollar crisis is ``quite low'' and that valuing the currency only against the euro may be ``misleading.'' Bernanke's comments ``suggested the U.S. will maintain the low interest rates for a while, triggering a new round of dollar selling on the first trading day of the year'' in Japan, said Kikuko Takeda, manager of the foreign exchange and treasury division at Bank of Tokyo-Mitsubishi Ltd., a unit of Japan's third-biggest lender U.S. President George W. Bush's administration is untroubled by the dollar's decline, which may help boost sales and manufacturing jobs in an election year without an acceleration of inflation or higher interest rates. quote.bloomberg.com