Posts by "luca"

Hi Ashraf.
Thought-provoking comments as usual. My long-term bullishness on gold notwithstanding, based on today's Geithner comments on the $ and yesterday's proposal by Bank of China's governor Zhou Xiaochuan to establish a currency "independent" of all countries, what do you make of Gold's inability to follow-up on last week's rally even as the $ has remained not much below last week's peaks? According to trading savvy, it is not a good sign when something that should rally does not rise in value. I am hard pressed to see anything else as "independent" as gold (and hence a new currency order would essentially replicate the mechanics of the Bretton-Woods system with some sort of peg/parity). One may of course invoke the increased risk appetite but - for instance today - I have seen gold actually recover in sync with stronger equities, so I'm hard pressed to see the latter as the key driver. Of course, even a short-term correction needn't impair the long-term fundamental merits of gold. What are your thoughts, please ? 1000 thanks in advance.
Luca

Fascinating comments, Ashraf, your website is by far one of the most informative. If liquidation and financial meltdown - driven mostly by equity markets - are going to remain with us for quite a while, what would become the trigger for a rebound in precious metals and where would the ammunition be for institutional investors to drive it? I will definitely buy your book, keep the great job !!!