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Price of Gold


#1

Hello Haim and all:

Since supply and demand do not have anything to do with
the current rise in gold price

I really don’t mean to offend anyone but I must differ on this. Due
to the low price of gold for some many years now, it hasn’t really
been very profitable to mine. Gold is constantly being discovered,
but due to low gold prices and mining costs it has not been
profitable to dig it up. People have still been buying gold, mostly
on paper. More gold has been sold than has been mined and it will
take many years to cover what is sold right now, not to mention what
will be sold in the near future as the price rises. With a possible
war comming and the way the economic situation is, more people want
to take physical possession of their gold. This is causing a big
shortfall in supply and when that happens, demand goes way up and so
does the price.

it will definitely go down after the war with Iraq. When and how
much is pure speculations. 

If enough demand for physical possession of gold persists, then the
mines that are just sitting there right now will start to produce
and the price will not drop until demand drops and demand will not
drop until supply is adequate.

Michael R. Mathews Sr. Victoria, Texas USA


#2

Hi Friends,

One element of the supply and demand situation that I haven’t seen
anyone mention is the dumping of gold reserves by government banks in
recent years. Most, if not all currencies are no longer on a gold
standard. Economists and central banks started asking themselves why
they are holding all these gold reserves because, at this point it’s
just another commodity, like oil or copper.

So, with surprisingly little attention, banking institutions began
reducing or liquidating their gold reserves, providing a more
cost-effective way for gold consumers to get it than to justify
mining it. I don’t have any idea how much gold has been “dumped” on
the market in recent years (last five?), but it could be argued that
it has held gold at artificially low prices. As these institutions
reach their desired reserve levels, this source dries up. Or maybe it
tightens up due to a geopolitical situation. Either way, gold prices
can be expected to rise.

Will gold prices ever get back down to where they were two years
ago? Probably not, unless more gold materializes on the market
somehow. Will the stock market ever get back up to where it was
three years ago? Maybe someday, but I think it will take decades.

Just one guy’s perspective on the situation…

Dave


#3

Regarding the idea of don’t buy something if someone somewhere is
doing it wrong is really quite flawed.

The same reasoning could be applied to clothes, food, everything.

The fact of the matter is that if you are willing to pay more (or
only buy) for something that is “clean”, then the business world
will realise that in order to do business, they too must be clean.

This is the way that market forces work. If enough people only buy
environmentally friendly stuff, then the non-environmentally
friendly stuff will become less prevalent. ALSO, the more that this
kind of behaviour occurs, the more it is accepted, thus reinforcing
itself.

Look at whaling, years ago it was seen as OK. Then some people
refused to buy whale derived products, eventually it got up enough
steam to be internationally recognised as appalling. These days
very few people would consider buying whale derived products.

Hopefully other things can follow in a similar trend, be it gold or
diamonds, or shoes or electricity…

Cam


#4
Look at whaling, years ago it was seen as OK. Then some people
refused to buy whale derived products, eventually it got up enough
steam to be internationally recognised as appalling. These days
very few people would consider buying whale derived products.
Hopefully other things can follow in a similar trend, be it gold
or diamonds, or shoes or electricity... 

Whaling got us baleen for corsets, oil for lubes/light, meat, bone
and ivory for various functional and decorative uses, and ambergris
to stabilize perfumes. These products gradually got replaced by
better, cheaper substitutes.

Petroleum upstaged whale oil, and polymers (a petroleum product,
formerly flamed off at the wellhead as waste) upstaged baleen and
ivory.

The Makah of California are desperately trying to preserve their
indigenous culture, via the male-bonding of a whale hunt. Responsible
hunters take no more than they need and use ALL of what they take. To
waste is to disrespect your companion, the whale.

Your version of perfection ain’t gonna happen on this planet.

Desire + freedom + access to capital = improvements! Be patient!

Respect for resources = sustainable supplies

Daniel Woodard
@Daniel_Woodard2


#5
  Look at whaling, years ago it was seen as OK.  Then some people
refused to buy whale derived products, eventually it got up enough
steam to be internationally recognised as appalling. 

The impetus behind whaling was the need for whale oil. When petroleum
use began, whale oil was no longer needed for cheap lighting, etc.
Where whale products are still of economic value (e.g., whale meat in
Japan) the killing goes on. General horror is far less powerful than
money. A rather nasty species, aren’t we?

Tas
www.earthlywealth.com


#6
 ...that when petroleum use began, whale oil was no longer needed
for cheap lighting, etc. Where whale products are still of economic
value (e.g., whale meat in Japan) the killing goes on. 

I find this ironic: these great creatures are contaminated with
mercury through human activity; consuming whale flesh containing
mercury brings our “nastyness” full circle back to humankind.

We ARE a rather nasty species… soiling our nest so to speak.

Judy in Kansas, where we should see the remnants of Javier soon.


#7
Where whale products are still of economic value (e.g., whale meat
in Japan) the killing goes on. General horror is far less powerful
than 

Last I read, whaling isn’t kept alive in Japan because eating whale
meat is popular. It’s kept alive because of tradition and the
government supporting it, and whatever reason they drum up to keep it
going even if on its own it would no longer be financially feasible.
Last I heard on that subject, it was supported by the government for
’scientific’ reasons and if the whale boats’ sole income was selling
the meat and other by-products, it wouldn’t actually be enough to pay
the bills.

Meanwhile…on the subject of general horror AND money…there’s
always gold to discuss…

–M. Osedo
http://www.studiocute.com