Post by
rolfoto on Oct 20, 2005 8:57pm
'Meaningful Strength'
https://www.theaureport.com/
'Meaningful Strength'
Source: The Gold Report 10/20/2005
Gold has backed off a bit from the 17-year high it achieved on September 22. However, all signs point, over the long term, to stronger prices – and higher profits for investors, according to the latest industry newsletters and news reports.
“With inflation now front-page news, the stock market ready to tank, and consumer sentiment sinking faster than Bush’s popularity ratings, the last thing central bankers want is for gold to start shooting higher,” says James Turk, author of the Freemarket Gold & Money Report. Yet, gold continues to show “meaningful strength,” according to Turk, who says this suggests that the latest rally has much further to go, both in time and distance.
Jay Taylor’s position on the U.S. economy is similar to Turk’s. “I think what we see here is just the beginning of a long-term trend that will lead to plunging standards of living for Americans,” says the author of J. Taylor’s Gold & Technology Report. Both Turk and Taylor believe that as long as policy makers and the central banks continue to create “dollars out of thin air,” the supply of dollars will continue to skyrocket, and as that happens, “the less valuable they will become in terms of real money,” says Taylor.
So far, the price of gold has averaged about $470.00 in October. Taylor considers that “very very cheap in terms of the enormous amounts of new money creation by the Fed.”
Richard Russell, author of Dow Theory Letters, agrees with both Turk and Taylor on the value of paper money and the central banks’ desire to keep the public in the dark. “Is all paper money basically junk?” writes Russell. “Of course it is, and in due time, as the old saying goes, it will be reduced to its intrinsic value. This is the dreaded secret that the central banks of the world don’t want you to think or recognize.”
Russell says the Fed, which should be the keeper of our hard-earned money, is “selling this nation down the river, and we poor slobs have only one way of protecting ourselves – and that’s by buying gold.”
According to Russell, the current picture adds up to higher prices for gold. “We are now in the early stage of the second phase of the great gold bull market,” he says.