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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Stephen O who wrote (37743)	12/3/2005 2:46:35 PM
From: goldsheet	Respond to of 312410

Subscribe to Economist, read the article, but not as brave as you were to post it <grin>

To: Stephen O who wrote (37743)	12/3/2005 2:46:58 PM
From: Canuck Dave	Respond to of 312410

Giggle. They work for "$250 a ounce is a great deal for England" Brown? If gold is unnecessary in a wonderfully managed fiat money system, why didn't somebody else think of it thousands of years ago? Oh wait, they did. Only problem was the currencies eventually inflated away to nothing. It's only the dumping of gold collected over centuries of a gold standard that is keeping the fiat currencies afloat. When they run out, or decide to stop... Just my opinion. CD

To: Stephen O who wrote (37743)	12/3/2005 7:01:17 PM
From: LLCF	Read Replies (3) \| Respond to of 312410

<Gold's renewed shine is best explained by thinking of the metal not as money but as a commodity dug out of the ground. In the past few years the price has climbed because mining companies stopped locking in prices by selling gold in advance—in effect, withdrawing a huge source of supply> Seems pretty lame for a periodical calling itself "The Economist"! Correct me if I"m wrong, but the mining companies aren't hoarding gold, they still sell it as they get it out of the ground... so any change in "supply" is actually just short term, as I-Banks would buy options and forwards from the companies and then borrow and sell physical from the Fed, and other CB's. So as miners stop selling forward, I-Banks stop borrowing and selling reversing what they have been doing. So "withdrawing a huge souce of supply" could really be looked at as either changing the timing by a few years or even putting things back the way they used to be. Now the CB's supposedly are selling less... but that's another story. DAK