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To: nopardons

It doesn't matter what you fiat-fanatics think. Gold has no choice but to rise. The same economic realities that have been driving gold will continue to drive it higher for years to come. We simply have no short-term choice in the matter. Not me, not you, not the congress, not the FED, nobody. When gold hits 1650+, then we can start looking for tops.


202 posted on 09/21/2006 11:55:47 PM PDT by GodGunsGuts
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To: GodGunsGuts
Have you gotten rid of all of your dollars and change; sweetums?

$1650 ?

Oh dear, oh dear.....and you think that you will live long enough to see that happen? ROTFLMAOPIMP

204 posted on 09/22/2006 12:00:56 AM PDT by nopardons
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To: GodGunsGuts; nopardons
"The same economic realities that have been driving gold will continue to drive it higher for years to come. We simply have no short-term choice in the matter."

It's important to keep in mind that our financial markets are driven first by people and their trading decisions, and market prices are not directly determined by "economic realities." Those economic realities strongly affect the trading decisions of people which directly set market prices. But there are also other strong influences on market prices, such as the attractiveness of alternative investments, market psychology, and technical market factors.

There are also short sellers and they are a big force in the relatively small gold & silver markest--ignore short sellers at your own peril in the gold markets. It's important to realize that rising gold & silver prices tend to increase inflationary expectations and in effect tend to push inflation along. So which big economic forces in the world get hurt by rising inflation and the resulting higher interest rates? Well one of them is Wall Street (brokerage and investment banking firms), and from what I've heard that's where a lot of the short sellers work. Short selling contains the price of gold and silver and when prices reach a support level, the good short sellers cover their short positions and make a big trading profit too.

Ultimately gold & silver prices will probably rise substantially because of increasing demand and limited supplies in the future. But I wouldn't bet much on a big increase any time soon. That's just my opinion. You know what's best for you.

208 posted on 09/22/2006 12:39:15 AM PDT by defenderSD (Blogging from a secure, undisclosed location in the southwestern United States.)
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