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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (1285)	1/20/1998 4:37:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 9980

And of course if you look at the last three months it looks like an even more raging bull market in the dollar. Apparently there is both a demand for liquidity as well as a store of value. If the Federal Reserve continues expansion of the U.S. money supply at the present rate, it would seem to guarantee a bull market in gold and perhaps oil and some other commodities. It should take about two years before the price of services begins to inflate in the United States. Everything is a moving target that is valued in terms of something else.

To: Little Joe who wrote (1285)	1/21/1998 10:27:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 9980

Of Gold and Economics. Little Joe, speaking of gold here is an interesting situation facing India. As you know India is the largest consumer gold in the world and majority of the metal is used for ornaments and not as an investment,thought during difficult times people tend to resort to pawning gold as a last resort. This 'gold loan' business is pretty big there as well. Some of the gold goes into jewellery for export earning foreign exchange. There seems to be a debate going on in some circles in the country about this whole business of gold.They contend gold is being hoarded by people in the form of jewellery and this is sucking up lot of money from the system,money that could have been used for more productive endeavors. This practice has been going on for ages and considering the annual consumption of gold is some 500- 700 tonnes per year, you are talking about substantial amount of money being tied up by individuals. It will be interesting to hear what you and others on the thread think about the economic implication of this phenomenon is. Any thoughts????? Here is a link to an article about this. expressindia.com