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

To: Lalit Jain who wrote (20873)	10/6/1998 6:20:00 PM
From: Alex	Respond to of 116872

Thanks LJ. Agree with much of what you say. My thinking is probably far too simplistic on things, but here it is FWIW. The problem in the global economy today is deflation or fear thereof. Gold, by Allan Greenspan's own admission, is used as a leading indicator of future inflation\deflation. A falling gold price = further deflation = market meltdown. CB sales are now done in an entirely different environment than a year ago. They are done at great risk to their entire economies\markets. A rising gold price, on the other hand, could signal a turn in deflation. It could act to supplement minor interest rate adjustments and change psychology. It could help rescue markets for a change. I know - I'm dreamin again : - )