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

To: The Street who wrote (28755)	2/22/1999 9:16:00 AM
From: Hawkmoon	Respond to of 116837

So, you are saying that people are still viewing gold as money. And that the Fed is trying to keep it down to keep the dollar strong in regards to gold-- and maybe even manipulating it to keep the dollar as the new gold standard in the world. I didn't say that. If people thought was "money", they would be using it on a daily basis as Ole 49r claims she does. It is a storehouse of value to park a portion of your savings/investments into. But few people buy gold coins expecting that they will have to actually use them as money. They buy them thinking they will increase in value relative to the dollars they fear will weaken. If gold was money, then you and I would be able to go into any store and use gold coins to purchase goods without raising an eyebrow on anyone's face. But since Gold ONCE WAS a currency standard, and is generally seen as an indicator of inflation in Fiat currencies, CBs seek to control its market and price. I think the Fed may be just as "guilty" of supporting the gold market as well. For what panics a central banker faster than all else, is to see a sudden and dramatic swing in prices, especially those that may impact perception of Fiat currency. Had there been no support from the CBs, gold may have even fallen further. Especially given the article that Alex just posted. If there is no conviction on gold from the major holders of it, look out little guys. In the stock market, that is referred to as "distribution" and it usually signals a major turndown in a stock. Regards, Ron