Welcome to the Crystallex HUB on AGORACOM

Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: Gold $900.00 and a bit

Maybe that will help us out and speed development, one can only hope.

With the US Government "we are going to print some money and hand it out to you" programs coming, this should devalue $. Even if we do not a get any consumer spending spurt out of these plans, gold should continue to rise. Holders of Crystallex shares or any other gold mining shares can get short term valuation as long as inflation or devaluation does not bite into the gains when you sell. Anyone can realize that the mine starting production ASAP is also very importiant to thier financial bet against dollar value loss...... What makes this exiting is it's kinda like playing "You bet your life", because long term things dont look as good- $850 (1980) gold should be worth over $6000 currently if indexed to the dollar value decline.

I have done some reading of late on gold and deflationary cycles as an example here is one: http://www.gold-eagle.com/editorials_05/milhouse041905.html

This was written in 2005 before the contraction started:

   (1) Genuine deflation is a sustained contraction in the total supply of money and credit, NOT a fall in the general price level
   (2) It's actually more accurate to say that gold is now an effective hedge against the loss of confidence in fiat currency

IMHO- It is a perplexing situation, as the housing bust and tight money makes it feel like deflation, (I say this because I know people were using thier equity just like a money supply) while we have serious inflationary signals from prices on other things. I think gold price is much more of a Dollar confidence issue rather than inflation or deflation at this point, and that is what makes KRY an interesting bet.

 

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