Agoracom: Small Cap Investment - San Gold Corporation - Re: Shorting

Welcome to the San Gold HUB on AGORACOM

San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.

Dear Agoracom Family,

I want to thank all of you for your patience with us over the past 48 hours and apologize for what was admittedly a botched launch of our new site.

As you can see, we have reverted back to the previous version of the site while we address multiple forum functionality flaws that inexplicably made their way into the launch.

To this end:

1.We have identified 8 fundamental but easily fixable flaws that will be corrected in the coming week, so that you can continue to use the forums exactly as you've been accustomed to.

2.Additionally we will also be implementing a couple of design improvements to "tighten up" the look and feel of the forums.

Sincerely,

George et al

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AndyK

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Re: Shorting - misunderstood

in response to

Re: Shorting

jasmts

posted on Dec 05, 2007 07:33PM

Sorry, i guess i need to clarify what i posted.

Yes and no, gold is a commodity and a form of real money. In this case, when Gold is acting as real money, the US will buy back some of its money with gold and it will strengthen their dollar. By taking USD out of circulation, the value will go up.

But most of the strength in the rise in gold price is not because everyone wants it, the demand is not so great as to push gold up over the past year from 650 to 800 dollars. The strength of gold is because the US dollar has been devalued.

This is why the cost of a barrel of oil and the ounce of gold are so closely related, if you look at the price curves of oil and gold, they are similar this year, but also look at the drop in the value of the USD against other currencies and the curve is the reverse.