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Non-Tech : The Woodshed -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (6555)	5/10/2004 10:49:27 PM
From: Square_Dealings	Read Replies (1) \| Respond to of 60914

Well Mr Gold Market gave us a nice hammer today, closing above 377.5 is bullish for the moment. And the HUI bounced a little with the SP,DOW,and Naz breaking March lows. M.

To: Little Joe who wrote (6555)	5/10/2004 11:29:34 PM
From: TH	Read Replies (1) \| Respond to of 60914

LJ, You make some very good points. Maybe it is impossible to value gold in an absolute sense, still I think there are some assumptions worth consideration. Gold has a 4000-5000 year history as a store of value, and I can buy it for about the same price I could 20 years ago with dollars that are worth much less. Second, there is a very clear objective to keep gold at a certain price, as its appreciation relative to the dollar proves the fiat has lost value. Maybe this is not enough to make a specific dollar valuation for gold, but in light of the Fed's past, and potentially future (helicopter drops!) actions, its an idea worth considering. "My response is that there is only one price that matters and that is the market price." I agree that "today" offers the most valid and meaningful price, but our objective as investors/traders is to recognize unrealized value and to position for it. As I have posted, I am not too concerned about the POG movement, up or down. In time POG is going to reflect value, and I'm patient. If and when new information is available that indicates the Fed is going to stop printing money, our government is going to stop overspending today and will address the entitlement deficits of the future, and our trade deficit begins to diminish in a meaningful amount, I will reconsider my position on gold. I will sell at whatever the market tells me the price is at that time, be it higher or lower. So far I have zero evidence that any of those issues are being addressed and I expect them to worsen. I agree that the market did give some clear signals, but as my focus is on bullion its just easier to ride these ups and downs until my fundamental view changes. I think this decline in POG is nothing, and I won't even blink until we approach $325. I expect the unexpected with this stuff. I did get a very nice wackin on my gold fund, but as I think a turn may be near I'll ride that out a bit too. Probably not the best move, but I'm a turtle. Thanks for your thoughts and good trading. TH