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schloss_1

09/20/03 6:39 PM

#153210 RE: carl_p_r2 #153208

carl_p_r2

If you think that AG is going to let the stock market slump then you better look at the chart of the last six months. Markets simply do not move in straight lines and yet this one has. Wonder why?

There is another possible scenario with respect to gold and stocks. They could take turns rising and falling like the different sides of a Cornish engine. Sort of a sickening 'pas de deux,' if you will, as the economy struggles along. In this scenario, stock selling gets up a small head of steam only to have AG regain control and pump it back up after each 500 point selloff. There are probably many different reasonable scenarios between the black-and-white case of gold or stocks triumphing.

schloss
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valuepump

09/20/03 8:26 PM

#153216 RE: carl_p_r2 #153208

The rise in the price of gold could be nothing more then the fact that there is a lot of US dollars chasing a lot of different asset classes right now, and some of the investors out there don't see value in the stock markets and have little place else to put money. The precious metals markets are significantly smaller then the equitys markets, so any movement of any nature is going to effect them, particularly the paper manipulated silver market.

With that said, you are probably correct. The stock market will probably give, along with the US dollar.