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

To: donald martin who wrote (26776)	1/22/1999 1:11:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 116857

Donald, Am I the only one thinking this through?? Alrighty then.. I'll spell it out. Gold goes up through the $300 cap that suggests a breakout. People normally equate higher gold prices with inflationary pressures that impact their holding of bonds and cash. People sell their bonds and cash, adding additional selling pressure against Fiat money, and they go out and buy gold. Gold goes up even more while the dollar continues to be under pressure. More "johnny come latelys" realizing that "inflation" is worse that they thought (although technically non-existent) decide to buy gold, selling the bonds and equities in their IRA's and 401Ks to buy even more gold. The dollar and bonds fall even further, while the gold market is just picking up a good head of steam attracting even more "johnny come latelys" (probably like myself... :0). Now where does it end?? Does it end as CB's commence wholesale sales of gold into the market?? That is how gold "attacks" the reserve currencies. And it is not a monetary "flashlight". It is a monetary "nuclear strike". It doesn't take much to shake people's confidence and willingness to "consume". When people don't consume, products aren't sold and businesses go belly-up. Those employees, who happen to be consumers also, lose their jobs... and you then see a domino effect. I'm seen it happen at a micro-economic level where a major manufacturer in a small community leaves or goes bankrupt. This results in other small firms in the community going under as consumer demand dries up and people fear for their futures. It's why you don't see the Japanese consuming much and saving every penny they can. Regards, Ron