Haven't visited this site for some time because I was afraid to obtain more knowledge, and in the current market the more you know the less money you will make. This contention can actually be proved using basic laws of physics, as follows :
Most people would accept that -
Knowledge is Power
Time is Money
and, as every person knows:
Power = Work / Time
If Knowledge = Power, and Time = Money, then
Knowledge = Work / Money
Solving for Money, we get:
Money = Work / Knowledge
Thus, Money approaches infinity as Knowledge approaches zero,
regardless of the Work done. What this means is:
The Less you Know, the More you Make.
Those of you who are wondering why you cannot make money in the current gold market, it's because you know too much.
Regards, Milhouse
To : John Disney
Any country involved in a war will generally see its currency and debt instruments weakened due to the additional debt taken on and money created to finance the war. If China went to war with the US then the value of US debt owned by China would plummet in value although it could still be sold to anyone except the US Govt.
Virtually every action which is taken these days be governments and their CBs is motivated by short term objectives. You are right in that gold is the only money worth holding in a time of war, but unless a country's political and economic officials expect a war to break out in the next few days this will not be a consideration. Everything which is being done in Europe at the moment is an attempt to meet the apparently conflicting short term goals of achieving EMU requirements and reducing those unemployment numbers. Holding gold does not provide the instant gratification they desire.
Actually, the situation in Europe will likely go from bad to worse. More welfare spending will be needed to "help" the unemployed, which will require increased government spending and increased taxation, which will reduce real economic output, which will lead to higher unemployment and the need for increased spending and increased taxation, etc etc. The socialist machine will eventually lead to the total collapse of the European economy and subsequently a new monetary system based at least partly on gold.
Regards, Milhouse
COMEX METALS -- Aug ( GCQ7 ) and spot ( KRCGL ) gold have both moved to the bottom of their respective triangle patterns as seen on daily charts. Bollinger Bands have tightened but not to historically narrow levels. Because the patterns each is in have nearly reached their apexes ( right side points ) , they are likely to be negated by further sideways action. At that point, Bollinger Bands will have tightened further and a breakout should be imminent. The direction is still unclear.
Jly platinum ( PLN7 ) spent the week in a sharp correction consistent with its sharp run-up the week before. Friday's close brought the market below the 38.2% Fibonacci retracement level of the Feb-Jun rally so we may see further weakness to the 50% level near the $415 level.
Vieserre - No apologies necessary, but I did think that my post which attempted to prove that the more you know the less money you make was clearly tongue in cheek ( even though it seems to ring true in the current market ) . Actually, what I have found is that the more I learn, the less I realise I know and the more I want to learn.
Best regards, Milhouse
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