Hi CB, I am definitely not a "back to the gold standard" advocate, but I suspect gold will maintain purchasing value better than the dollar, as money, or more appropriately, as a store of purchasing value; that is not the same as saying gold ought to be an investment on par with, oh, AOL, MO, GE, or C.
Investment is investment, as in something that hopefully grows faster than economy and inflation over a short time (3-5, even 10 years), ala, equity, real estate, bonds;
Money is money, as in what I need in the bank account and the wallet; and
Purchasing value storage is purchasing value storage, as in, I can leave this till the end of time, through a time machine, and still buy a boiled egg with it.
I have read Mundell's writing before and have no disagreements with him (nor with the earlier mentioned Greenspan article. BTW, thanks for the date correction, which cleared up my mind about uncle's sanity over the past 5 years) ...
columbia.edu
QUOTE
The International Monetary System in the 21st Century:
Could Gold Make a Comeback?
Robert A. Mundell
Columbia University
Lecture delivered at St. Vincent College, Letrobe, Pennsylvania, March 12, 1997.
UNQUOTE
Chugs, Jay |
