[OPE-L:6155] gold and falling profits in the global economic contraction

From: Gerald_A_Levy (Gerald_A_Levy@email.msn.com)
Date: Sun Nov 04 2001 - 19:56:35 EST


The intuition of many Marxists is that there will be a 'flight towards
gold' in an economic crisis.  This perception is reinforced by what
Marx wrote about this subject ... yet times have changed since Marx's
time. 

Does the empirical evidence suggest a 'flight towards gold' during the
current global economic contraction?

For some empirical data, see:

http://www.technicalindicators.com/gold.htm

(Note that this is a private source rather than a government or academic
source.)

Two items of note:

1) the data at that site show a *sharp decline* in gold prices (as measured
in US$) since 1997.  Is this data accurate? Can the same be said in other
regions of the world capitalist economy?  If not, then what might be some
regional factors affecting 'gold prices' (vis-a-vis individual currencies)?

2) They project a *continued decline* in gold prices. Is this a likely
occurrence? Why or why not?

What are the best explanations for these developments? Do they tend to
confirm, disconfirm or have little bearing on the positions advanced by
listmembers about the role of gold in the current international capitalist
economy?  Akira? Claus? Others on the list who follow this subject?

In solidarity, Jerry 



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