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

To: long-gone who wrote (27260)	1/29/1999 12:49:00 PM
From: Hawkmoon	Read Replies (4) \| Respond to of 116762

Richard, I really enjoy the exchange of ideas and I'm not trying to be condescending here, but I want you to think about something. Right now the price of gold is approx $288/ounce and if gold started moving to the price you stated, $325-450, I would have to ask you exactly where you would find the greater storehouse of value. Of course, you would say "Gold". Now a price of $450/ounce for gold was roughly equate to a 80% decrease in the value of the dollar (now costs me $450 to buy an ounce instead of $288). And since gold is seen as an indicator of inflationary pressures, it would send a shockwave through the dollar and other currencies that these Fiat currencies are losing value, and those equities and debt obligations are less secure. That would result in a mass exodus from those holdings and into gold and gold mining stocks. Now I know you would love to see a hefty portion of the US total market cap suddenly move into gold and silver mining stocks and the metal itself, but I frankly don't see the value in worsening the condition of the current pressure the entire stock market is currently under from a weakening Advance/Decline Volume where a few stocks are driving the market higher. I mean are the jobs and profitability of the precious metals mining sector really worth the millions of other jobs across the economy that could be lost?? I think not. (but I'm sure some gold miners would disagree with me) I would much rather see a broadening of the entire market and a pull back in some hypervalued stocks that are sucking capital away from many deserving smaller cap issues. It may not happen and in that event there will likely be a market crash similar or worse than the one in July. But I really have no stomach for making something happen when it may happen anyway. Again, for gold to go up, the dollar must go down. Each currency competes against one another, the dollar, Euro, and Yen. Hiking the price of gold suddenly, or even subtlely, would be inducing an economic collapse that deserves every chance of working its way out of the problems it finds itself in. I know you goldbugs disagree with me, but you can't refute the logic (I don't believe) that gold can't rise without a commensurate drop in Fiat currency. Regards, Ron