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

To: loantech who wrote (65210)	7/4/2006 2:43:20 PM
From: shades	Read Replies (2) \| Respond to of 110194

Rates going down - Saville Is it good or bad for gold - goldbugs can't even decide if high interest rates or low interest rates are best eh? 321gold.com Now, some of our current expectations are: 1. The broad stock market is about two months into a downturn that will last 6-12 months. 2. The US economy is slowing and will likely shift into reverse later this year in response to the cyclical bear market in real estate and a general contraction in liquidity. 3. As a result of 1) and 2) above, the Fed will soon end its rate-hiking campaign and will be cutting rates by the final quarter of this year. 4. As a result of 1), 2) and 3) above, the yield-spread will soon experience a major upward trend reversal. That is, we are expecting the financial backdrop to soon become very favourable for gold, leading to a period in which gold makes substantial gains relative to all other metals as well as fiat currencies. Therefore, although the initial setbacks in global equity markets and the industrial metals have predictably been accompanied by a sharp decline in the gold price, it is important to keep in mind that what's happening now is setting the stage for gold to rally against almost everything. Steve Saville email: sas888_hk@yahoo.com Hong Kong