Maurice, Regarding your post on May 23rd, 2002
Message 17510179
I haven't done my gold rant yet, but yes, if they are going to shrink the measuring stick by 50%, then gold will double [and stay there]. However, so will everything else which is measured in shrunken dollars. I am NOT comfortable holding my damn US$ [have been waiting for a blip down in the Kiwi$ but it's zoomed away from me in a couple of weeks]. I might have to retreat quickly back to the safety of CDMA and cyberspace.
Meanwhile, okay, I'll go and look at some gold coins! It would be fun if nothing else. [Hmmm, first signs of a drug addict].
… it is a pity you did not buy the gold coins on that day, when gold was being given away at USD 320/oz all around the world.
Since that time, QCOM has gone from USD 15 to USD 48, a 220% increase. The problem was and is, given the complications, how much can anyone actually allocate to QCOM?
Gold, in the mean time, has done 125% increase. The important thing is that (a) one can comfortably allocate a lot more to gold than one could ever to QCOM, say 16 times more in my book, and so the absolute quantity of profit earned is actually a whole lot more:
Like …
May 23rd, 2002 => USD 320 allocated to QCOM => 320/15 = shares of QCOM = 21.33 shares allocated
May 13th, 2006 => 21.33 x 48 = gross receipts = 1,023 USD receive (profit = 1,023 less 320 = 703 USD)
May 23rd, 2002 => 320 x 16 oz gold = USD 5,120 USD allocated to gold
May 13th, 2006 => 16 oz x 715/oz = 11,440 USD returned (profit = 11,440 less 5,120 = 6,320 USD)
… in other words, given reasonable thinking folks appetite for risk and resultant allocation, one could have earned sooooo much more by gold than by QCOM.
In the mean time, going forward, QCOM will head down, down and more down, especially when measured by the gold standard, the true standard.
Reflect on this message, and know QCOM is a trade, like what I did to earn money off it without holding it for more than three months, where as gold is for excess savings and surplus capital, for all times, for ever.
Chugs, J |
