"Pay Me Now Or Pay Me Later."
Friday, July 27, 2007 - FreeMarketNews.com
It will be interesting to watch those who would not buy gold at $300 the ounce clamor to line their pockets with it when the price moves into four digits.Puru Saxena, Editor of Money Matters, writes in a 321gold.com post:"...when it comes to gold, investment demand alone is the single most important factor that can make or break a bull-market. And the investment demand for gold is directly linked to the public's inflation expectations. "If the masses are worried about future inflation, they tend to convert their cash to gold as a store of value. On the other hand, when the public is calm about inflation, the reverse takes place. "Banks are in the business of lending paper currencies so it is absolutely vital for their survival that the public's confidence in the monetary system remains high and that inflation expectations remain under control. Every central banker knows that if the public really understood the inflation problem, the monetary system would come under strain. So far, the central banks have done a fabulous job of managing the public's inflation expectations. However, I am of the opinion that this is about to change. As soon as the public realizes that inflation is much higher than the official CPI data, we could see a stampede towards gold."Richard Russell, long-time Editor of Dow Theory Letters, writing on 321gold.com states:"The bullish "count" or price objective for gold is now 85. This would be a sensational move if it occurs. The "count" on P&F means that the technical requirements are there and are in position so that the "count" or projection can occur. There is no guarantee that the projection will occur, it simply means that the item is technically capable of reaching the projection. In bull markets, bullish projections have a good chance of materializing." Staff Reports - Free-Market News Network
It will be interesting to watch those who would not buy gold at $300 the ounce clamor to line their pockets with it when the price moves into four digits.Puru Saxena, Editor of Money Matters, writes in a 321gold.com post:"...when it comes to gold, investment demand alone is the single most important factor that can make or break a bull-market. And the investment demand for gold is directly linked to the public's inflation expectations. "If the masses are worried about future inflation, they tend to convert their cash to gold as a store of value. On the other hand, when the public is calm about inflation, the reverse takes place. "Banks are in the business of lending paper currencies so it is absolutely vital for their survival that the public's confidence in the monetary system remains high and that inflation expectations remain under control. Every central banker knows that if the public really understood the inflation problem, the monetary system would come under strain. So far, the central banks have done a fabulous job of managing the public's inflation expectations. However, I am of the opinion that this is about to change. As soon as the public realizes that inflation is much higher than the official CPI data, we could see a stampede towards gold."Richard Russell, long-time Editor of Dow Theory Letters, writing on 321gold.com states:"The bullish "count" or price objective for gold is now 85. This would be a sensational move if it occurs. The "count" on P&F means that the technical requirements are there and are in position so that the "count" or projection can occur. There is no guarantee that the projection will occur, it simply means that the item is technically capable of reaching the projection. In bull markets, bullish projections have a good chance of materializing." Staff Reports - Free-Market News Network
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