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

To: PaulM who wrote (13145)	6/14/1998 6:04:00 PM
From: ahhaha	Respond to of 116811

We have a gold standard. It has been in position for decades. If gold is so unimportant, why don't Central Banks simply sell every ounce they hold? After all, Armstrong and many university types think it's just a commodity. Why are banks holding a commodity? What do they know that they don't want us to believe? All these gold bears are just what you should expect around the bottom. They trot out the most ridiculous inventions to justify the circumstances and then believe the inferences achieved based upon their own inventions. Gold is the most closely watched indicator at the FED. Why? Because people are stupid and believe in this absurd standard so that it represents a barometer of inflation expectations? Why should the FED be concerned about presumed wrong mass judgement? One of the most common errors of university thinking comes from the need to be accurate. To be accurate you have to introduce constraints. You have to delimit the field of consideration otherwise exogenous factors can blow your tightly woven argument into pieces on a whim. There is a trade-off between rigor and results. To validly formally assert something requires the satisfaction of many conditions. The world of economics just isn't amenable to such rigor. In economics about all that can be done is to hold to several principles and let the capricious nature of markets and peoples determine the future. Armstrong follows this academic tradition. Much of what he says is good. When you let reasonings go too far, you can get into untenable positions. All academics have a debt to the state. They have a predilection to extol the value of statism. They rarely even know that they are doing that. None of them likes Adam Smith. Part of that attitude is rancor towards free markets and exposure to the democracy there. Democracy means the elitist university types have no a priori advantage over the common man. Therefore they have to trash all forms of dog-eat-dog equilibrizing that often occurs in trading pits. They prefer the presumed intellectual better way. They are scientists who believe that science advances mostly in theory, leastly in experiment. The free market is an on-going experiment to determine the accurate price of things. Galbraith believes that is better done by intellectuals evaluating series data. I guess gold must have a fractional P/E. Glad to hear that the better minds are bearish, because when it turns, there is nothing like the rush to something when what you have a conviction in is shown to be wrong. The rush doesn't give you time to think and guess what all those smart guys reach for in a panic?

To: PaulM who wrote (13145)	6/15/1998 8:13:00 AM
From: Bobby Yellin	Read Replies (1) \| Respond to of 116811

exchange2000.com hard keeping track of Bill Murphy but here is another thread with Frank Veneroso's comments.. I thought about the 200,000 dollars per ounce..what irony..wonder if BRE-X had been on the level,long term that would have been bullish for gold since then there would be more gold to back up currency.. after that thought past,though well the world currencies could be backed by gold,silver and diamonds..(notice no mention of natural gas or oil..toooooo political)...just thoughts.. watching after this correction of blue chips,if small and mid caps will resume leadership and mutual funds will invest in domestic companies and wait for Japan to do something.. (wish I had more stockmarket history..don't know if there was a time when interest rates were so low and there was a bear..read that prices were going down before depression though-have no idea though if there was such incredible wealth generated by so many at that time to provide liquidity..also with the internet and superspeed information and more people able to be informed..if the bear markets will be much shorter) since interest rates are so low and will probably go lower,I think many baby boomers who don't buy the no inflation here mantra still won't want to put their money in bonds or money markets and will still throw money into the market..but maybe not into the index funds..also don't they the average person likes to get into hedge funds or buying put options..time will tell... if small caps and mid caps that are undervalued don't do anything price wise..I will become one terrified person