Bob K.

Why the Gold Sell-Off is Unlikely to Last

Jim, regarding your second post, money moves into and out of stocks, asset classes, etc. continuously, (sector and asset rotation) and yes money does come out of a stock, that is why they go down in price. On Monday there was more money in the stock market than on Friday, where did the difference go?

Regarding your first post, price of gold does not move in price much on it own, it is essentially is the benchmark. It is the amount of dollars it takes to buy it that is the prime mover of its price. The price of gold in Euro's is much less than the price in dollars, yet the credit expansion is world wide. Those who believe the price of gold will rise see the dollars' continuous descent due to the rapid expansion of the dollar supply. I see this taking the U.S. into a recession and/or accelerated inflation which will force other nations to debase their currency to maintain a comparative trade advantage, this means all scarce commodities (Gold, Platinum, diamonds, etc.) will rise in comparison.

Instead of insulting these authors, regardless of your view of them or their motives, stick to laying out your case.
Bob

Gold Should Continue To Gain vs. Paper Assets

In February, gold was the liquidation vehicle of chioce for the speculators in the yen carry cover. But overall there must be a undebased medium of choice to store value for trade. Paper money is confidence and over time if we all keep producing more of it in relation to our productivity, gold will rise in relation to it. It has a place in even Maikiel's portfolio. :-)

The Decade of Complacency and Gold

To Malkiel, gold has already out performed equities over the last five years, so I do not get your point. This equity move from 04to 06 is obviously counter trend and people moved out of gold to capture it. Reasonable strategy. As for the price of gold, it does not move much, it is all else that moves in opposition to it. Martyrisk raises the right comment. What would the Asians and Arabs and for that matter the Russians want, USD that we can debase or a hard asset. You may hate gold, but history tells us that it is a hedge against financial assets, I see no evidence of that being repealed.

Bob