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

To: Mark Bartlett who wrote (27713)	2/4/1999 8:49:00 AM
From: Hawkmoon	Respond to of 116954

The price of gold is a constant ... it is currency(s) that moves up a down, relative to gold Sounds like a "Sun orbiting the Earth" argument to me. Using that interpretation, any commodity is a constant, with the price of that commodity being the fluctuation of the value of the currency being exchanged for it. You might say that your vehicle has a constant value, with only the strength of the currency determining how much your resale value is from year to year. The price of something is based upon supply and demand. If there is too much supply, consumers can compete for a better price for that good. If there is too much demand, the seller has the ability to command a maximum price for that good. Supply and demand. Works with gold. Works with Fiat. Works with your own personal property. I surprised that you would think something has a constant price. Constant price as compared to what?? Another myth of the intrinsic value of gold. Gold is only worth as much as people are willing to pay for it. And since it competes with dollars, paying more dollars for gold means that you have less confidence in your paper than you do in the metal. Paying less for gold means you have MORE confidence in your paper than you do in Gold. Lack of buyers in gold, or more sellers, results in lower prices until the market finds an equilibrium of buyers and sellers. (whether they be real sellers or short sellers, margin buyers for that matter). Regards, Ron

To: Mark Bartlett who wrote (27713)	2/4/1999 9:36:00 AM
From: menanna	Read Replies (1) \| Respond to of 116954

Hi Mark, How are you? <Some of the countries which are in trouble, could have used gold to assist them in getting out of their difficulties (in fact some did, despite the lousy price), but as it is, they have to rely mostly on the US/IMF for their loans, that sooner or later go bad ... then the currency manipulations that unfold. Then the loans have to be paid back in US dollars, when the currency is weak. Then these countries have to up their interest rates .... quite a vicious cycle.> Yes, quite right. I share your sentiments entirely. On the other hand, I can't help myself to look at this mess with the eyes of a "cold war political refugee". Some thinkers in these countries think that since the global cold war was won by the US, they are now "harvesting" the winner awords. They feel that the US are now collecting war taxes from the losers and the losers' sympatisers. Maybe they are right, maybe not. I was in Italy over the Xmas holiday. The Euro was a big event. Every paper spoke about it and reported on other major europian papers editorials. Some historians and phylosophers see the Euro as the way to reduce the winner looting. (sorry for the harsh words, just sharing what I read) Take care, and good lack with DMX Anna