On 31st May, the following interesting scenario existed: Gold $659.70; Rand $ R7.11; Gold in Rands: R4690.47; On 20th July: $683.70; R6.86; R4690.18; Today: $658.6; R7.1; R4676. So the gold price in Rands has hardly changed over the past week, but my gold share portfolio has dropped 10%. So what's the difference in the past week when my gold portfolio went down compared with the previous couple of weeks when it went up. Shares plummeted this week because of a rally when the USDX got to 80. The general shares have bled into the gold shares, but I expect an imminent recovery in gold shares once people realise that although general shares might depreciate, there will still be a an even bigger demand for gold. Don't believe me? start here:
http://www.zealllc.com/2007/goldusdx.htm Don't believe that? go to Kitco and read some of the reports there. Want more information: read
http://www.stock-market-crash.net/florida.htm Sorry to sound gloomy, but if you've been missing Zarp, I have a lot of research I can share with you. Once the USDX goes below 80, people (especially governments (and especially the Chinese government)) are going to start exiting the $. And what will they buy? Gold mines and other currencies. Actually I have no idea what will happen when the USDX goes below 80, but from all my reading, it will signify that the world has finally realised that the $ is a fiat currency and not the world's reserve currency and gold and other currencies will start becoming more important.
