Gold and Silver Stocks and Related Commentary Message Board

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Politics : Gold and Silver Stocks and Related Commentary

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To: loantech who wrote (14347)	6/16/2005 4:34:34 PM
From: seventh_son	Read Replies (2) of 18308

Jewellery demand can sustain prices, but I can't see it leading to truly significant price rises. Gold's true potential is not in hanging around people's necks or on their fingers but rather as an alternative currency, a safe haven investment, and possibly a speculative fad. That's what fuelled the boom in the 70's and what the next boom will be about, IMO. But we will only see gold shine as an alternative currency when all other currency alternatives are unattractive. So far the US dollar is showing cracks, people are losing faith in the Euro, and Japanese government bonds and correspondingly the yen are suspect to any sane person. Long term bonds in all these currencies are paying pathetically low rates, and that is where the world's big money is, enough money to easily suck up more gold than all the central banks can lease out if the tide of this sea of wealth shifts. I can see a strong rise in gold either as a speculative chase for something different in the absence of good prospects in real estate or elsewhere, or as a flight of money by the world's megarich if they truly lose faith in the security of the bonds of world's financial superpowers. JMHO

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