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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (18011)	6/21/1999 8:44:00 AM
From: Tommaso	Respond to of 99985

I am certainly not going to contradict your view about the possibility of a huge short-covering rally in gold, but the chances of such an event in silver seem a lot better. I have (unfortunately) been holding more gold than I should for years, and over that time the technology for heap-leaching has advanced so quickly that the cost of producing gold (as we all know) has gone down steadily. The main value of gold has always been its rarity combined with indestructability. I am afraid that the very word "gold" carries a great weight of metaphorical significance that is no longer justified by the reality. Back some decades, when the Homestake mine was driving its shafts and tunnels a mile or more underground (as it still is), the cpaital investment and expense to extract gold from rock was enormously higher than it is now. I am afraid that I now view gold somewhat the way I view earthquake insurance: it could be very valuable, but in many parts of the world it is more likely to prove a useless investment. Not that I know what to put in its place as a stable store of value. But like insurance, gold is something you hope you will never really need.