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

To: kayco who wrote (62692)	1/4/2009 9:04:14 AM
From: E. Charters	Read Replies (1) \| Respond to of 78426

Well it, (POG), was always tied to oil and interest rates, and war. Vietnam War produced a big move in gold as it was also tied to release in ownership restrictions, and change in price control structures in London. The connection with interest rates is harder to see classically because of the gold standard. It was once classically tied to markets in the sense that when markets went up, gold went down and vichay versa. But in the 1990's it started to go with the marketsia, and not agin it. This has separated from time to time, and right now it appears to be moving agin the market over longer periods and perhaps from time to time moving with it short term. If you look at the real POG since 1492, strangely it has never been low because of increase in supply! It really points to a "reverse elasticity" or extremely inelastic price behaviour. Initially, because of induced inflation when gold suddenly increases in supply, the price shoots up high. This can be seen as the increased usability of the metal when its supply increases. It aids commerce, so becomes automatically demanded as money. One of the highest increases in Gold price occurred shortly after gold was discovered in the New World. Gold price prediction. youtube.com Gold outperforming commodities youtube.com My Basement.