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

To: Jim McMannis who wrote (32675)	4/28/1999 1:18:00 AM
From: bill	Read Replies (3) \| Respond to of 116759

Thanks. That makes it specific. Learned a lot on this thread today. Do you believe that the relationship of the XAU to POG is more direct and more predictable than to any one company? What I've been looking for, I guess, is a barometer. If I check Kitco and see that POG has gone up a dollar, can I then expect a corresponding rise in XAU? If that is true, would it also be true that if I first saw XAU and it was down, would it then be predictable that POG must be down? Is this too simplistic? Would the fact that the XAU is a basket of stocks smooth out the fact that individual companies may have their share price affected by many factors other than POG but a general rise in XAU would be dependent on POG? One always likes to find others who share one's beliefs. I was gratified to see that some members of this thread believe that the real rate of inflation is not being reported. For some time now I've been telling ad naseum to all who would listen that the reported inflation rate is being manipulated. Has anyone checked the basket of items that has been used over the past five years to determine the rate of inflation? My guess is that the items have been changed with the purpose of hiding the true inflation rate. Meat, cheese, bread, candy bar prices can rise significantly and the rise be obscured by adding a computer to the basket and using the fall in computer prices to counter the rise in prices of necessities. Read the grocery ads in a five year old newspaper and check the prices and amounts you get for a given price. Some inflation has been being hidden by the lowering of the size or weight of the items being sold (cold cereal, chocolate bars, canned soup, etc). If you've got your liquor receipts from five years ago check and see what a bottle of booze cost then and compare it to now. The current bitter strikes that have started to occur in Canada aren't about people wanting to have money to buy BMW's. Between taxes and inflation and static salaries a lot of people are being squeezed financially. A recent report has stated that a significant number of people are charging their groceries on credit cards and are unable to clear the balance. At the usurious rates charged by the credit card companies that makes those groceries very expensive indeed. How will this affect POG? Is the govt. in collusion with private business the goal of which is to keep the price of gold down because then it can be argued there is no inflation since gold is so symbolic. You might pay twice as much for steak but gold is at all time lows and you can buy all you want of it so see there is no inflation.