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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: PaperPerson who wrote (61964)	10/27/2008 12:36:23 AM
From: PaperPerson	4 Recommendations Respond to of 78411

RE GOLD: we are heading toward a tipping point which is at the bottom of the inverted pyramid of currency and forms of wealth, envisioned by John Exter sometime before 1989 and extremely valid in this current crisis. John Exter worked for the New York Federal Reserve's gold department long ago and he used the model of an inverted pyramid to explain the unwinding of money during a financial meltdown. Scared money is moving down the pyramid toward gold. you can see that in the wholesale unloading of good stocks, moving into t-bills, and unwinding of carry trades, most of which is propping up the u.s. dollar and hurting the euro, canadian dollar and pound. This is exactly what Exter said would happen. He said that during the vast majority of times, the inverted pyramid of money would just sit there, looking calm and placid and unchanging. But that during a crisis, the picture would change fast, in the direction of more and more liquidity and cash. I know what i am saying looks dead wrong at the moment, as we see gold "plunging" toward under $700. But if you stand back, you will see that what I am saying is still quite viable. When people start cognizing that even u.s. t-bills are poison, because of the crap that the fed and the govt are buying and the unsustainable debt they are incurring, the next and last stop is pure gold. When the train starts moving to that station, it will accelerate at a swift rate. Michael

To: PaperPerson who wrote (61964)	10/27/2008 9:01:37 AM
From: E. Charters	Read Replies (1) \| Respond to of 78411

It's not so anti-figger as u tink. When people chase dollars, they go up in price. figgers simple. If everyone was selling every piece of furniture on the block to pay the rent, what would happen? Furniture would go down in price. Rent would hold, however. And dollars, being scarce would go up in price. In effect you are using furniture to buy dollars. So dollars go up if furniture goes down. You have to look for "the rent thingie" in this equation. What is holding. I see gold holding well, while its cousins are being sold big time. This is because although people are selling gold it is relatively inelastic in price. Copper and zinc, lead etc, are very supply and demand elastic. Eventually when all the selling is done, and hedge funds are exhausted and perhaps bankrupt, then prices will return. Don't hold you breath on that one. youtube.com Gold in CDN dollars is still $924.00 despite being only 722 in US bucks. What does this mean? It means that the rush is on for US pesos. For a while. EC<:-}