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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (6705)	1/25/1998 2:42:00 AM
From: Zardoz	Read Replies (1) \| Respond to of 116764

Wisdom. Message 3116763 investor1.com

To: philv who wrote (6705)	1/25/1998 3:39:00 AM
From: PaulM	Read Replies (3) \| Respond to of 116764

Phil I think that's a good illustration. Asia can't afford dollar denominated commodities thus reducing demand and arguing for lower dollar denominated prices (deflation). But that''s because their currencies are tanking and prices for them are higher (inflation). I don't think "inflation" v. "deflation" really focuses on what's important re: POG. Current world economic conditions will increase demand for gold whatever you want to label them. In the 70's, did the reduced purchasing power of the dollar mean demand for gold in the U.S. was lower? Of course not, because the two compete as a way to save. That argument is equally ridiculous if applied to a falling yen and Japan EXCEPT that Asians have an alternative in the form of the dollar. Which in turn is based on the full faith and credit of the world's largest debtor nation. And now with a president who allegedly can't keep it in his pants regardless of the consequences. (No disrespect intended) More dollars, more yen, more DM's are made every year than gold, technology notwithstanding. This kind of "inflation" will continue in the coming years whatever we call them, and this is the only kind that's necessary to ensure gold's superiority over its competitors. But unlike gold, its competitors have the full faith and backing of world's govts. What gold needs to realize its value as a medium of exchange is a crisis of confidence in our illustriuous leaders and the economies they run. Again, current economic conditions fit the bill. However we label them. P.S. IMO one of the more "inflationary" aspects of current economic conditions that are ignored are dollar sales by foreigns in an effort to support their currencies. That means lots more dollars floating around. It's ridiculous to thik the rest of the world's currencies will crumble without taking the dollar down with them. It can't work that way.