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

To: Chispas who wrote (96897)	1/7/2004 6:44:11 PM
From: maceng2	Respond to of 116972

Maybe a 100 shares would of been a better bet. He could always have sold a put, covered call or something. Besides, one needs a little dough in reserve at times like these -g-

To: Chispas who wrote (96897)	1/8/2004 10:37:47 AM
From: Chispas	Respond to of 116972

Bill Bonner, "Nature's currency". Yesterday, however, the dollar staged its first major rally in six weeks by jumping 0.7% to $1.263 per euro. But gold barely budged. The last three times the dollar rallied as much in a single day, gold tumbled $4.50, $8.40 and $13.30 respectively. Apparently, gold investors are becoming increasingly distrustful of dollar rallies...And so far, distrusting dollar rallies has been the winning trade. - We wouldn't want to read too much into one trading day. But gold's conspicuous strength has not been a one-day wonder; it has been a multi-month phenomenon. When the gold rally was a mere newborn, back in the middle of 2001, it seemed even less likely to survive than baby Moses. Back then, the lumps loved their dollars and their stocks and their bonds and their home equity...Who needed gold? - Instead, and seemingly against all odds, the gold rally survived, then thrived...and it thrives still...to the dismay of central bankers worldwide. The gold rally not only exposes the world's paper currencies as institutionalized counterfeits, it also exposes the world's central bankers as knaves. As many Daily Reckoning readers may recall, these esteemed bureaucrats dumped millions of ounces of their countries' gold reserves at prices near and below $300 an ounce. The expressed rationale for this knavery was usually "to seek higher-yielding investments." Oops!...One way to raise the yield on investment might be to remove all central bankers from their posts. - Returning to our opening query, What's powering gold's tireless advance? We don't know exactly, but we can guess as well as anyone, and we would guess that the world's investors are voting with their pocketbooks to exchange paper for gold. - The hundreds of millions of folks around the world who distrust their national currencies are nibbling on gold like piranha around a water buffalo. Every day they nibble; every night they nibble; and before you know it, there's no gold left to nibble on...until the price moves high enough to draw more "fresh meat" into the market. - We, like many gold bulls, suspect that a "correction" will begin very soon, possibly pulling gold down towards $400 an ounce. But that correction, should it arrive, would provide another splendid opportunity to swap America's dollars for "nature's currency."