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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (45983)	6/9/1999 9:23:00 PM
From: BGR	Read Replies (3) \| Respond to of 86076

This is how I see gold. 1. An inert metal w/ little industrial usage. (-2) 2. Has cosmetic usage mostly in the third world, which is declining except in South Asia. But that depends so much on style and other intangibles. (+1) 3. Has no intrinsic value like its peers (other currencies) which are backed by the respective economies (as opposed to the Central banks). (-2) 4. Doesn't produce dividend. (-1) 5. Is considered by many to be a hedge against inflation. That belief alone - and nothing else - makes gold a hedge against inflation. The moment the belief collapses (as it seem to be doing at present for central banks), gold has to be valued based on the above 4 points, which gives a total rating of -4. Belief is even more an intangible than style. It's kind of like TA. Given these 5 points, I feel that it is extremely risky to invest in gold. Comments appreciated. -BGR.