Will gold exhaust itself?
Peter Grandich: We compared the gold market now to what it was like in the early 1980s....through the 50s, 60s, 70s the Dow Jones Industrial Average was trapped between 700 and 1000. By the early 1980s, equities became so out of favor that there was an infamous
Business Week Magazine front page story that said equities are dead. They were not owned largely by the public.....
Peter Grandich: Gold had a major breakout above $1,000. We had called it and said it would go from a ceiling to a floor. My personal opinion is....I don't believe in my lifetime...we we'll see a price of three digits or less in gold again. If there is a correction to come, if there is a serious consolidation I don't think it will be much...
Who's buying: momentum traders; retail investors; fund buying; short covering?Peter Grandich: I think it's everybody that you mentioned. I think people are participating in it....The stamp of approvals came in two ways. The first big fundamental stamp was India's purchase of IMF gold. That really gave people a realization that that large a quantity available sale that someone would step up and pay retail prices really put a floor under gold. But I think the other thing that's happening as I compare it to the early 80s is we're now seeing established not crazy people always predicting the end of the earth,
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