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

To: IngotWeTrust who wrote (28015)	2/11/1999 11:24:00 AM
From: Ken Benes	Read Replies (1) \| Respond to of 116753

Ole 49R: No, I have not changed. Having an interested in the gold market, although muted at the present time, I read most of the posts on this and other boards for those tid bits of information that come from those like yourself with a pulse on the market. What I was commenting on was the extraordinary amount of time some people spend examining every nuance, event, or tick in the currency markets as a portend of an imminent and inevitable move in the gold market. As I mentioned in my earlier post, the stored value of gold has been used to provide a liquidity that has been used to support the western equity markets in a world governed by collapsing economies and currencies. How durable this support will be is debateable. At the moment, the wealth effect of stocks and an economy based on technology and services has insulated us from the ill effects of the world economy. The deflationary effects of the decline in Asia and South America has provided our consumption based economy with a flood of cheap goods. It may well be that at some point in time, that our currency/economy will suffer the same effects as the Asian economies who spent more than they earned. It is also posssible that the Asian economies will begin to recover and with that recovery and increase in world demand for commodities and goods. Should this occur, we will suffer the consequences of rising prices and a declining currency. For myself, I think the days of gold rising in anticipation of dissruptive event are over. Should there be an occurrence that disrupts our currency/euro and a concommittant decline in the equity markets with its inevitable effects on our economy, there will be an intitial flight to quality(bonds). If the safety of bonds falters and the manipulations of the CB's fail, then the inevitable move will be to gold and other stores of wealth. To sit on pins and needles waiting for this is counterproductive, while the party lasts there is plenty of money to be made running a business. Ken