Hi Elmat, to quote dailyreckoning.com "DDGU, get use to it" ;0)
Chugs, Jay
P.S. DDGU = Dollar Down, Gold Up
Goldman Sachs: "Gold will drop because jewelry demand will drop". But Abby Jo says consumer will keep spending (just not on gold jewelry) until equity market goes up 30%. One of the many faces of Goldman is wrong.
JP Morgan: "Gold will average $325 in 2003". Why? Why not $450? What do they know that we do not?
Andy Smith (famous gold analyst ala internet-Blodget): Gold will die at USD 68/oz (no, I am not missing a zero)
Message 17521712
Jay: Suppose all the gold mines on this planet are exhausted, and all the gold that will ever be, is.
In this world of no new supplies, and only minimum jewelry / electronic demand, and where cost of mining and exploration are no longer facts to confuse the unbeliever's mind, what would the price of gold be in the various currencies?
Will central banks recognize gold? Would the world's consuming and savings electorates care about central banks?
Gold would be the currency of a possibly fictional and certainly virtual Gold Nation, like the Vatican city-state, but without leaders, agendas, policies, aircraft carriers, debt, accounting, taxes, computers, perpetual war for endless peace, energy requirement, democratic mobs needing pleasing Message 17527872 , retirees requiring funding Message 17532990 , a virtual city-state whose future is exactly like its past, and its money, gold, can be used to buy anything in any 3D nation.
What would gold be worth?
Possibly USD 68/oz, if USD is paying 800% interest per annum, and gold can be borrowed at ...?
I actually believe gold lease rate was unnaturally low due to all the complicating factors introduced by hedging, central banking lending, bullion bank machinations, and most importantly of all, Japan low interest rate. Gold lease rate will have a market rate in a less complicated world that awaits us all.
Possibly USD 6,800/oz if the current Pax turns out to be a mirage shimmering above a castle of sand built on shifting debt next to a printing press operated by Greensbudkaput.
So, putting a few gold coins away every time one walks past the bullion dealer, every time one feels like spending some paper money, and every time one gets some unexpected income is a good old fashioned idea. Beats buying Q-money, with its sleepy Board, greedy officers, careless auditors, restless employees, nasty markets and fickle customers.
So, again, DDGU, Chugs, Jay |
