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.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (86504)	1/28/2012 8:54:31 AM
From: studdog	1 Recommendation Read Replies (3) \| Respond to of 217820

TJ, The charts you posted suggest gold is "fairly valued". Any upside would therefore be due to either irrational exuberance or growth in the global money supply. It seems that gold follows the world money supply pretty closely (see below) and has recently corrected an undervaluation present since 1998. Growth in the global money supply seems pretty assured so one could expect gold to go up. But, since these charts suggest gold is fairly valued, it may only go up as fast as the global money supply, as the undervaluation which gave gold such a boost since 1999 has been largely corrected. That undervaluation was corrected by gold going up X6 since 1999 while the money supply went up X4. So, the real question re gold prices is how fast is the global money supply going up? SD