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

To: Enigma who wrote (38743)	8/10/1999 12:15:00 PM
From: George Castilarin	Read Replies (1) \| Respond to of 116954

Gold, A Long-term Loser, Offers Investor Meager Return At Best Source: Seattle Post-Intelligencer Question: What is your opinion about the gold market now? Do you see a turnaround for this long-plagued investment? Answer: I don't make predictions for various financial vehicles and certainly not the gold market. However, I will say that if you seek long-term returns well above the rate of inflation from your investments, you should shun gold. Gold is a long-term loser. Over the decades, the increase in gold prices has just kept pace with inflation. Therefore, after paying taxes on these meager gold returns, an investor would actually net an after-tax return below the rate of inflation. Precious metals tend to perform better during periods of high and unexpected inflation, such as what happened in the United States in the late 1970s and early 1980s. Interestingly, with the recent inflation scare that sent interest rates rising during the second quarter, gold barely budged in price.