Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Fun-da-Mental#1 who wrote (4113)	12/12/2006 9:23:56 AM
From: hubris33	Read Replies (1) \| Respond to of 50725

It is sure hard to have a discussion with someone with posts like this: I'm not saying I don't want to hear it, just make sure what you're saying is well backed up before you click the "post public" button. I am flabbergasted! All of the statistics I have referenced have been from the World Gold Council and I have provided links to these in my earlier posts. I just don't understand what your point is and how can you say that? My posts were all supported by facts, yours supported by your understanding of theory. You have avoided the discussion or application of the facts, just relied on theory! But you also said these two statements: Applying this logic to the gold market, it looks like there is no scarcity. (No surprise, considering gold is not really consumed, only hoarded or recycled.) Message 23093265 And by the way, I am an electrical engineer and I'm well aware that gold is used for plating electrical contacts, and is often not recovered from the end product, siliconinvestor.com Which is it? Is gold consumed? Or not consumed? I am trying to follow your argument but it looks like you are on both sides of it. Then in support of your later point above, you said: nevertheless the amount of gold that is thrown away each year is quite a bit less than the amount that is added by new mine supply, Huh? The statistics show that 11.5% of the gold supplied in 2005 was consumed in the industrial and dental, never to be hoarded or turned into jewellery, just plain lost. Is 11.5% insignificant? Is it insignificant when mine supply is apparently going to be essentially flat for the next several years due to under investment by the gold producers in the previous 10 years? One of the key premises of the "Gold Bug" theory is that we are seeing a rise in demand {see the year-to-year jewellery chart} at a time period where mine supply can not increase significantly. Read the World Gold Council info, there are suggesting a 2% increase is gold supplied by mines year over year. Did you take time to go read the reports I referenced or did you discount them and go directly to the economic theory? But I think you are mixing up the economics. First you said, Anyway, with regards to the gold market, there's no point looking for an imbalance between demand and supply, because there won't be one. Then later in the same post said, Price depends on the level of buying interest. Message 23093265 Huh??? If there are no imbalances in the supply-demand then what makes prices go up and down? Isn't "buying interest" another name for demand? Don't the charts posted from the World Gold Council clearly show a year-over-year increase in the demand ("buying interest") for gold jewellery? In fact, that demand looks like a pretty good upward trend, no? And with that demand increase, has been an increase in the price of gold, no. Now do you see how I am having a hard time following what you write? But you haven't answered the key question: How is the price of gold set? What makes the POG go up and down? Is a one-quarter drop in demand for jewellery significant? H3