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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (2646)	10/8/2006 5:49:36 PM
From: wsw1	Read Replies (3) \| Respond to of 50281

a falling out w/ Sinclair slider? you used to post and agree with a lot of Sinclair's and Norcini's comments 1 year ago... yes, a lot can happen in a year...but, the fundamental case for owning gold and gold shares has not...it has only improved with more of the geopolitical uncertainties that exist... and the geopolitical situation has only worsened significantly since last year...gold is not currently reflecting that, but it will... think, iran sanctions... think, north korean nuke tests... think, major attacks against us interests at home and/or abroad... think, another war between hezbollah and israel...heck, maybe syria will join in next time... think, iraq and afghanistan...worsening, and worsening, and worsening... these are valid concerns that any market participant must be concerned about in this day and age...the way i see it, the us is continously racking up deficits trying to fight the global war on terrorism...those costs are increasing annually...tax revenues are going to drop as the economy rolls over...this will worsen the current account deficit and impact the dollar negatively...if rates decrease to ward off a slowing economy, the dollar will weaken, and gold will rise...if rates increase, the dollar will be propped up at the cost of a decelerating us economy and gold will still rise... let's face it slider...we may simply just be in a period a la the middle 70s when gold took a nice whack...we know how the rest of the 70s panned out...but, this isn't the 70s...there are many more market participants with their online brokers and trading platforms, and hence many more speculators throwing money into the hottest markets...the internet has made the flow of information that much more rapid and easily-disseminable to the masses... whipsaws are going to happen and be dramatic in cases like gold and oil...but make no mistake, gold is the ultimate currency and it has yet to assert its full value...which of course, at some point, will revert to the mean...but, only after breaking the 1980 highs...