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To: Oldeconomybuyer

Gold is rising because:

1) the ongoing fiscal insanity in the US
2) the ongoing printing and subsequent devaluing of the dollar
3) the world is pegged to the dollar...1 & 2 apply here, as well.


16 posted on 04/24/2011 6:56:01 AM PDT by cranked
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To: cranked

uh, yours are not the reasons gold is going up, these are:

How much is being produced ?
Global gold production peaked in 1999 at just over 2,600 tonnes, having risen steadily from a 1980 base of about 1300 tonnes. In 2002 global gold production was running at just under 2,600 tonnes per annum, It is considered that lack of exploration expenditure in the 1990s, coupled with the inherent delays between discovery and production mean than the gold supply will remain inelastic and is likely to reduce slowly over the coming few years.

How much is being consumed?
Gold is not really ‘consumed’ in the sense that it doesn’t get used up, but its demand runs at about 3800 tonnes per year - notably faster than it is being mined (2,600 tonnes).


22 posted on 04/24/2011 7:07:22 AM PDT by macquire
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To: cranked

The fiscal insanity in Europe and Asia is helping out as well, along with the typical turmoil in the Middle East, Africa and South America. The train wreck is coming, it’s just a lot closer than it was a while back.


42 posted on 04/24/2011 8:14:41 AM PDT by MSF BU (YR'S Please Support our troops: JOIN THEM!)
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