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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (1045)	3/26/1999 1:25:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 3558

The difference that I'm talking about is quite a difference and very significant. It is of the essence of why we are going into a bull market in gold. I wouldn't have made the contrast today if the point was hair-splitting. Yesterday's post was partially intended to provoke a challenge about the difference between the bottoms. The rational expectation is that commodities as represented by the non-gold CRB should bottom first and then gold should follow as people become fearful of rising inflation. But gold is also hostage to the centuries long swing in money creation and no other entity gets the intensity of instantaneous demand/supply that gold receives. It is for this reason that gold seemed to break down from a structural low last September and immediately reversed. This was similar to what had occurred between 8/9/82 and 8/12/82 in the stock market. No, not even cancer cures and Internets get a commensurate intensity. Because gold represents value, the god of value, it has a sensitivity to human psychology that exceeds human understanding. That means gold mysteriously moves by the hand of its god in the direction of infinitesimal debasement. Debasement is a monetary phenomenon not necessarily connected to economy, central banks, or money! Debasement occurs in your head. Monetary debasement began when the FED gave up money targeting in 1993. It took 5 years before the effects could undo the positive effects of 5 years of stability which the money targeting had achieved. Worst of all even the free marketers and monetarists didn't believe in the money targeting process. It is this mental debasement, this attempt to usurp the gold god's role, the pretense to knowledge, that will cause this gold bull market, because all of the usual economic reasons won't. They await a more distant future when the whole world is unionized. Right now there is a large supply of slave labor and energy, so the prices of most things can't go far. It won't be gargantuan structural inflation that will drive this bull. That is why they will sell gold all the way up. And today's action was the first shot.