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.

Gold/Mining/Energy : At a bottom now for gold? -- Ignore unavailable to you. Want to Upgrade?

To: IngotWeTrust who wrote (1516)	8/6/1998 10:45:00 PM
From: ahhaha	Read Replies (2) \| Respond to of 1911

The US keeps the peace. There is no other nation that even comes close in the world's eyes to being able to deliver that. Could any nation trust Russia, China, Germany, Japan, France, with that role? This consideration supersedes economics because economics is completely hostage to it. The Arabs control the price of oil regardless of what children like to preach to the world believers. They price in dollars for at least the above reason and because the settlements structure and international trade machinery has been woven inextricably with the fabric of the dollar. This is why the price of oil has been carrying the price of gold. It's the last and least factor left, i.e., the least common divisor, the minimal kernel. All other factors are universally bearish or completely sold out so gold has no other rational pricing basis but to be marginally pegged to oil. Trust in the US and in the dollar as a stable medium has increased. Hasn't that been proven by the flows out of Asia? Inflation here won't change that even though the price goes down 15% with respect to the mark and yen. The hot money will move speculatively to these other currencies as inflation differential adjustments are overdone. The yen doubled between '93 and '95. It lost it all since '95. Any reason for the rise is just as good a reason for the fall, since they were the consequence of irrational expectations and nothing tangible has changed in the trade picture between the US and Japan. If Japan and the US enter a phase of joint inflation, gold will rise, but there will be very few that would prefer to hold their own currencies instead of the dollar.