Summary
Implications: 1. Investments in Tracking Gold Prices? Gold does not pay Interest or Income.Define the Value - Added! 2.Eight (8) consecutive annual advances MAY BE qualified by a weaker dollar due to internationaleconomic policies which due not appear to have an ending! 3.Expectations of inflationary policy may be grounded but with uncertaintity, 4.Hedge against inflation MAY Be a short term "Negative on Gold" The basis for decision-making : A forecast of Higher oil prices. 5. Forecasting MUST include all variables which are likely to surface. A forecasting Survey is not likely to include the unforseen conditions which surface at a latter date!
Analysis
Commentary:
1.Central Banks have many tons of bullion which they MAY threaten to sell!
2.Diversification is the key to success within the Gold sector.
3.Gold Funds May or May Not have a correlation with the General Financial Marketplace!
4.Gold Funds move proportionally up and down - more than the underlying gold commodity.
5.One should be well aware of the concepts which include Hedging, Shorting and option writing.
6.Variables include the termintion of one in 11/09 and the creation of another in 06/02. Volitilaty? One must be well-versed in the conceptual
components of investing!!!!!
