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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (7752)	7/14/1999 12:22:00 AM
From: Bob Rudd	Respond to of 78476

James: Speaking of Gold, I unloaded the Anglo-American a bit above 50 a few days ago...thanks again for the heads up. Gold's "Store of value" aspect won't be worth much unless everyone really starts running the presses or y2k really crashes the financial system due to counterparty risks with non-compliant systems. The former won't shine gold that much since there are other, previously unavailable, hedging vehicles like shorting T-bond futures. The latter is highly unlikely...it's never the stuff you see coming that nails you.

To: James Clarke who wrote (7752)	7/14/1999 9:27:00 AM
From: jeffbas	Respond to of 78476

James, on gold, I think that there are still plenty of people who think it is cheap because of prices that prevailed in the recent past - $800, $500, $300, etc. How about prices that prevailed in the more distant past, like less than $35 per ounce? Absent another disastrous inflation episode like we had in the late 70's, gold may well perform like any other commodity. If it does and enough production is driven out of business permanently (bankrupt) to balance supply, including central bank reserve selling, and demand, it might be of interest as an investment vehicle to me. I suspect we are still pretty far from that point. I will admit that gold should carry some premium to its pure commodity value for the small probability of a future inflation catastrophe and the increased price it would have under those circumstances.