"In 15 years Rambus will be a footnote in some moudly investor's mag ... but gold - it will still be here."
But at what price? When Microsoft started nobody wanted to lend Bill "Geek" Gates the startup costs. Yet 1/2 Trillion dollars later, every momma and pappa wants in.
If US Treasury has 260 MOz at $300/Oz Who's worth more, Microsoft or the Treasury?
Gold, and gold stocks values are best when played as a derivation of the commodity, and against its twin. {gold short, XAU long as one example & when the fundamentals allow} Just as Microsoft is vulnerable to Linux: Even golds' position as a currency hedge can be undermined, as better forms of currency hedging take place. This is why the volatility, and price of the commodity can and has fallen. In 1987 when options/futures & other specific derivatives didn't fail, the true position of gold as a lesser hedge was guaranteed.
amazon.com
Even in a true economic meltdown, currency frwards and options will still make GOLD volility less. The days of GOLD in the sun, are fewer. It's now main use is Jewerly. And as someone said, how much people are willing to pay to decorate themselfs. |
