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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.

Gold: War of Attrition

In economics 101. one is taught that printing money to monitize increasing national debt (i.e., to pay for giant bailouts and socialize the private sector dobt; to make up for sharply lower tax revenues; to underwrite the costs of ongoing wars -- in the end will result in high, if not hyper, inflation as the value of the dollar deflates and the vaule of precious metals, especially gold, rises accordingly. The rules of economics are simple and it is only in over-analysis to we get off track from fundamentals. Long gold is indeed for those who have patience.