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


To: E. Charters who wrote (62690)1/4/2009 7:14:29 AM
From: kayco  Read Replies (1) | Respond to of 78426
 
When growth comes back, won't gold go up due to fear of inflation?. I am playing gold shares because I think they will not drop too much during the down economy and will go up when the economy returns. The two items I can not reconcile is that gold shares seem to head down when the market heads down and that when the economy returns people will possibly pull money out of gold and put their money in equities causing gold and gold shares to go down.



To: E. Charters who wrote (62690)1/4/2009 8:12:32 AM
From: kayco  Read Replies (1) | Respond to of 78426
 
Clarification of my last email. I am buying gold shares because the gov. is going to increase money supply to counteract the drop in the economy, this increase in money supply could lead to increase in price of gold. When economy comes back, possibly gold will go up because of fear of inflation. The problem with these ideas is that gold shares have a tendency to head down as market heads down and that when the market comes back possibly people will pull their money out of gold and drive gold and gold shares down. Gold at this point seems to be tied to price of oil. Oil heads down, gold heads down.



To: E. Charters who wrote (62690)1/4/2009 10:39:45 AM
From: Claude Cormier  Respond to of 78426
 
No, been suggesting to get out of base metals since mid 2007.