What is driving the price of gold now?

Why should we care or give a hoot what is driving the gold price? Let’s listen first to what the master is saying about what is driving gold now.

“However, keep in mind that the driver of the gold price is the major international investment firms that are operating under the view that as long as the Federal Reserve maintains the discount rate at 1%, the price of gold will go higher.” Jim Sinclair, 12-30-2003

And what did Jim just say?

“…THE DRIVER OF THE GOLD PRICE IS THE MAJOR INTERNATIONAL INVESTMENT FIRMS…”

And as long as these facts are in force what is Jim’s conclusion?

“…THE PRICE OF GOLD WILL GO HIGHER.”

Ma & Pa investor are not even in this gold market yet. If I am interpreting what Jim Sinclair is saying still only a minority of money professionals are pushing the gold price higher. Will a “trigger” occur yet that will propel Ma & Pa into the gold market?

And what if Ma & Pa never do discover this gold market?

Well, in my opinion it really doesn’t matter if a trigger happens propelling Ma & Pa into this gold market overnight. Sure, it would propel gold share prices astronomically higher but even without these extra Ma & Pa investors gold is still destined to continue climbing higher.

I guess my point in discussing this is to emphasize that the important concept to grasp now is that gold has entered a new era. And part of the results of this new era is the fact that whether we experience a trigger compelling the overall market forces to respect gold it is only a matter of time before gold is noticed by all.

And a potential trigger effect?

We may never see a trigger effect & then again we may. Who knows?! We may just see a gradual flow toward gold shares over a longer period of extended time. But irregardless (my favorite word) we will continue to still see gold climb higher.

And let’s read again the words of gold’s greatest supporter (Jim Sinclair) so they may be driven into our brains.

“…THE PRICE OF GOLD WILL GO HIGHER.”

Let’s listen to another master gold analyst.

“WHERE IS THE “TRIGGER POINT” The Privateer Gold Pages, 12-19-2003

“The bull market of the late 1990s was accomplished by a RISING Dollar. The admittedly large BEAR market rally of 2003 has been accompanied throughout by a FALLING Dollar.”

Do you catch the imbalance being highlighted in the previous statement? Editor

“The problem is that since the US stock market is now looked upon as a savings vehicle & as a repository for retirement funds, the Dow is going to have to keep up this advance almost THROUGHOUT 2004. The election isn’t until November. The gross imbalances in the financial system point straight against this being possible. So do the increasingly desperate measures being taken by the rest of the world NOW – almost a year before the election – to cope with these imbalances.” The Privateer Gold Pages, 12 19-2003 http://www.the-privateer.com/gold6.html

Let’s concentrate on 2 points that we just read. Editor

“THE PROBLEM IS THAT SINCE THE US STOCK MARKET IS NOW LOOKED UPON AS A SAVINGS VEHICLE & AS A REPOSITORY FOR RETIREMENT FUNDS…”

And the second important point made:

“The gross imbalances in the financial system point straight against this being possible.”

Remember, I said at the beginning of this article that it is the professional money types that are now driving gold higher? The professional money & financial gurus recognize the severity of these economic “imbalances.”

And what is important to digest is that we need to be concentrating on what the experienced money gurus are doing with their money. Forget the fact that Ma & Pa may have not yet discovered the importance of gold as an investment yet.

They will eventually.

But pay attention to what the money gurus are saying and let’s repeat what they are saying & doing & that is that there are “…GROSS IMBALANCES IN THE FINANCIAL SYSTEM...” To me the fact that Ma & Pa investor have not yet entered the gold market but gold is still rising beyond 400 is extremely important.

AND FOR THESE REASONS GOLD CONTINUES & WILL CONTINUE TO REPRESENT THE BEST EXCELLENT LONG TERM INVESTMENT VEHICLE.

And let me go back to the title of this article, “Gold Entering New Era.” Please read the following which adds fuel to the fact that gold is indeed entering a new era. Editor

“GOLD RIVALS DOLLAR AS GLOBAL CURRENCY,” Sangita Shah, 12-29-2003

”The first decade of the 21st century took the world economies back to the past:”

“GOLD REGAINED ITS GLORY AS A MAJOR RESERVE CURRENCY IN THE INTERNATIONAL MARKETS.” …

“Unlike the 1990s, when central banks were actually selling gold in the belief that the yellow metal had little utility as a reserve currency, they have reversed their beliefs now.” …

“Economists now argue that since gold - unlike the dollar - is no one else's liability and is not directly influenced by the economic, monetary and fiscal policies of any individual country, IT STANDS A BETTER CHANCE OF BEING ACCEPTED AS A RESERVE CURRENCY BY MOST NATIONS.” …

“Geo-political tensions and the dollar's decline have sustained the demand for indestructible hard assets such as gold…”

“GOLD WATCHERS SAY A PRICE OF $1,000 IS NOT UNTHINKABLE…”
http://www.business-standard.com/smart/story.asp?Menu=29&story=30822

I’ve been reading a biography of a very successful Hollywood personality. But listen to what this financially successful star endured during his younger days & before he became wealthy & famous.

“He was constantly in trouble with his teachers & parents for skipping school…” “Finally, when he failed every examination, the principal requested him to take his leave…” JB, Irving Fein, 1976
And upon flunking school the young man started a job his father helped him get.

“First he tried to make Jack a salesman-assistant in the haberdashery store, but one day when he found Benny asleep on a table while four pants had been stolen by a customer, he fired him. Then Meyer (his father) enrolled Benny in the Waukegan Business College, but the boy was so completely uninterested that Meyer gave up…”

And as I said earlier this young man eventually went on to become one of the most financially successful entertainers ever.

GOLD REPRESENTS AN AVENUE & AN OPPORTUNITY THAT CAN CREATE WEALTH FOR THE AVERAGE & ORDINARY SIMPLE MAN OR WOMAN.

This gold bull represents a once in a life time event to participate in a methodical wealth building process where you can make significant sums of money.

No, this is not a get rich quick scheme. Do you want to get rich quick? Then go to Vegas & cross your fingers.

But for the serious investor willing to sink a portion of his or her time in the study of this gold market & learn how to exercise & develop a buy/sell strategy one can build & grow wealth in a conservative & orderly fashion.

Your success depends on the time & effort & discipline you are willing to invest in this. But the choice & potential opportunity are in your hands alone.

We do not believe in the one perfect gold stock play & we believe it is safer & more conservative to invest in numerous gold plays & to make your money by averaging & taking your winnings as a percentage as they grow.

Our strategy is to review many different & new gold projects & properties. We realize this game is built around averaging & our desire is to cover many different gold companies that represent good speculative plays.

Our performance average for 2003 for 41 different companies reviewed is 76% & some of the individual companies reviewed went up close to 10 times.

Gold Letter Alert is an Internet based service that emails to your computer reviews on new & different gold & silver company opportunities. We also make available through a password & login all our past issues for free.

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AT GOLD LETTER WE BELIEVE IN COUNTRY, GOD & FAMILY.
Let me make one last brief comment here.
There are literally THOUSANDS of gold & silver mining companies out there in the market place competing for your investment dollars. Some of these companies represent good speculations & many do not.
It remains our goal to separate the wheat from the chaff & to provide subscribers with a list of mining companies that represent good prospective speculative plays.
You, the investor, ultimately decide which prospect meets your personal objectives. But it is our personal goal to provide you with respectable worthwhile candidates from which to choose.

David N. Vaughn
Gold Letter, Inc.

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