Forum Archive Index - January 2003

["Lazy Haggis" <lazyhaggis@hotmail.com>]

Gold will increase for several reasons, but one of the main reasons is a 
falling US dollar. There are also several reasons why the dollar will fall, 
with one of the main reasons being a growing lack of confidence (globally) 
in its future value. Wars only compound this problem.

The general media prints bad news because it sells. The US financial media 
analysts print good news because it sells. No matter how bad a company 
report is, or an economic statistic is, they will spin it into good news to 
try and sell general stocks, while at the same time trying to knock gold, 
because it in effect, runs contrary to their argument.

The worldwide total market value of gold stocks is less than the value of 
General Electric, so you can imagine what a turnaround in analyst/media 
opinion will cause - obviously an enormous bull run spike on gold and gold 
stocks.

At the moment smart money is moving (moved) into gold, next will come a 
growth in institutional buying as the trend becomes more obvious and starts 
to become "more" reported by the media, and lastly as always, the general 
public will move in once they get "The Bug" wind of what's happening. The 
latter case is what will really cause gold to soar, especially as the 
momentum picks up.

The IT stock boom in the 90's was exactly the same, but with one major 
difference. Many of these IT companies paid no dividends, however, many gold 
companies do have good yields. So although gold is speculative, many gold 
stocks are also worthy investments in their own right. A fact frequently and 
deliberately ignored by most analysts.

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