Bernanke’s Gold Show Must Go On?
To better illustrate some of the forces at work drawing on one of Bernanke’s most famous quotes is applicable (bolds not added): ![]()
Today an ounce of gold sells for ?? $, more or less. Now suppose that a modern alchemist solves his subject's oldest problem by finding a way to produce unlimited amounts of new gold at essentially no cost. Moreover, his invention is widely publicized and scientifically verified, and he announces his intention to begin massive production of gold within days. What would happen to the price of gold? Presumably, the potentially unlimited supply of cheap gold would cause the market price of gold to plummet. Indeed, if the market for gold is to any degree efficient, the price of gold would collapse immediately after the announcement of the invention, before the alchemist had produced and marketed a single ounce of yellow metal.
In short, while I believe that $1,000 ounce gold will come to resemble a top more so than a launch pad, it may be important to remember that I regarded Netscape as pure mania only to watch the insanity continue for nearly 5-years afterwards. In other words, gold could continue to attract investors much longer than most think possible, and $1,000 ounce could be the headline grabber that opens the floodgates !!!!
Needless to say, one of the major problems with definitively coining precious metals a bubble is that Bernanke appears far removed from the inflationary attitude his Fed has produced. Bernanke logic says that the Fed has the power to immediately restore some confidence in USD by credibly threatening to attack monetary inflation. Question is, when will Bernanke, fixated on stimulating, switch focus?.....more >
http://www.gold-eagle.com/edit…8/willettalway030508.html
;;;;;Leute, was macht ihr wenn der Punk mal richtig abgeht und dann Tagesschwankungen von 5%-10% der Normalzustand sind.;;;;;; >
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