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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Jim S who wrote (36346)	7/2/1999 2:58:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 116762

Now, please, will someone please present a rational case for why gold should be worth more than its commodity value? Amen!! I'll give you one, or maybe a couple. But they all deal with relapsing into the historical psychology that surrounds the metal. War. All out global warfare where nations, their people and gov't, physically come under attack and cast their strength or security into doubt. No one wants to rely solely upon paper in this instance, especially since fighting a war is expensive and inflationary. War would cause a flight to hard assets (all metals) and energy commodities since both are crucial to fighting a war and demand would be high while the gov't would be forced to incur heavy debt to pay for those commodities. War is the best rationale for holding gold, silver, platinum, palladium, tungsten, aluminum, and copper. (yes, Richard.. even copper). Second case: Another all out oil embargo that severely alters the economic balance and increases prices all around for goods and services. Until this bubble would be burst by another feverish round of massive exploration and production activity, gold would rule since oil is denominated in dollars, thus making the dollar weaker relative to pricing power. So there are two cases for gold that I can think of.... both of which are possible but far fetched given the stakes that are involved. And neither would occur without some amount of general warning due to build-ups in tension or rhetoric. In either case, I would also buy gold, oil futures, as well as shorting the overall market directly or through a bear market fund. And thank you for your kind words. I really would like to get away from the personal attacks and rhetoric and see some logical arguments for plunging major portions of our portfolios into the metal. Personally, I want that shiny metal to go as low as possible so that I can afford to buy more of it just in case my worst fears come to pass with regard to global war. Regards, Ron