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

To: Rarebird who wrote (32676)	4/28/1999 12:24:00 PM
From: sea_urchin	Respond to of 116762

Rarebird : Many thanks for your comments. I can see your opinion is based on many years of experience at the School of Hard Knocks! Unquestionably the Dow, Naz etc are grossly overpriced but, nevertheless, just seem to keep on going up, as if in perpetual motion, defying the law of gravity! I thought the party was over last October and was amazed how the market just turned round and clawed its way back from the abyss and then on to new heights. All this must surely indicate that there's a lot of money coming from somewhere with nothing better to do with itself than gamble. Value is clearly of little consideration. If you talk about inflation then one needs no better example than the froth on the market itself. And interestingly, there are many second and third liners which offer good growth and good value --- but they are completely ignored. It is simply the favorites which are in demand and which define the "market". Re gold, frankly I don't know what to make of it because, fundamentally, the purpose of gold in the world has changed. Today's world no longer hangs on gold, as in times gone by, and even if the monetary system falters (or fails) the "boys" will make it their business to see that gold does not return as the linch-pin to the financial system. In fact, the more gold held in their reserves, the more the bankers are seen to doubt their currencies. As we know, the paper money game is one big confidence trick but, unfortunately for gold enthusiasts, that trick depends on the obvious devaluation of gold. And, since so much money is held in "paper" and paper instruments, it is essential that the game does not fail. So, it is almost impossible to appraise its true "worth" because gold is now really a "transitional" asset moving from THE reserve currency of Central Banks to yet another metal which is used in the manufacture of cheap, mass produced jewellery. Hence there is such a diversity of opinion about the value of gold --- some saying if it wasn't manipulated downwards the POG would be $500 and others saying if it wasn't manipulated upwards the POG would be $200, or less. I'm just in it for the ride --- like a roller-coaster!