[e-mail]

Gold: Recycling Threatens Demand-Supply Equation

Gold primarily has psychological when value looking at long intervals, clearly goes through periodic manic and depressive phases: either mass worry about the future (creating buying spurts) and mass euphoria sbout the current and future economy (creating hold or sell behavior).

Having said that, this article by Mr. Saxena is an excellent analysis of short term supply and demand factors which clearly affect short term cycles. His point that the downfall in demand in India is not a positive sign for gold bugs seems logically based. In any event, those who play short term cycles may profit or lose, but for long-term investors, gold is one poor investment, one that history has well-established is a lost economic opportunity.

For those in difficult economic times who believe that gold is a safe haven for a feared econmic implosion, perhaps they do not understand that a total golbal economic collapse would destroy the value of all investment assets, including gold. Faith in the future is what life and investing comes down to.