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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: The Vet who wrote (20308)	3/2/2004 7:33:59 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81913

Hello Mr Vet > a fall in interest rates in the presence of a strengthening dollar is a very positive sign --- and very bad for gold." puzzles me. I am suggesting that there would be low inflation as well as a demand for US "paper". This would indicate confidence in the US economy. (Don't ask me about that, but it would, according to the game!) > I always believed that low interest rates were positive for gold because the relative carrying cost of gold (which pays no interest, or very little) was higher than bonds I presume you are talking about contango or the relationship between spot gold and gold for future delivery. As I see it, where there are low interest rates, but high inflation, then that would be attractive for gold. However, low interest rates with low inflation and a firm currency shows a strong economy. Of course, that would be good for jewelry demand but that's something else entirely. Apropos inflation, I accept that the CRB is high at the moment but gold is now falling in relation to the CRB, which is clearly something to think about. Either POG is too low or the "market" feels the CRB is going to fall. I think the latter. stockcharts.com[w,a]dalaynay[dj][pd200,2][ilb14!la12,26,9] stockcharts.com[w,a]dalaynay[dj][pd200,2][ilb14!la12,26,9] > The strengthening dollar actually is positive for the gold price in all other currencies that must logically fall as the dollar rises. We have had this discussion before, but the confounding factor is the strength of those currencies in relation to the USD. For example, if USD rises and POG falls but AUD still remains very strong, then the gold price in Australian dollars may still be low(ish). It all depends on the "game" each currency (national reserve bank) is playing. stockcharts.com[h,a]dalaynay[dj][pd150,2][ilb14!la12,26,9] > All is relative dependant on the viewpoint of the observer. Absolutely. But one has to remain fixed somewhere in order to have the argument. One can't keep moving around just for the purpose of arguing! That reminds me of Schrodinger's cat ---- whatis.techtarget.com >>>We know that superposition actually occurs at the subatomic level, because there are observable effects of interference, in which a single particle is demonstrated to be in multiple locations simultaneously. What that fact implies about the nature of reality on the observable level (cats, for example, as opposed to electrons) is one of the stickiest areas of quantum physics. Schrodinger himself said, later in life, that he wished he had never met that cat. <<<