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

To: Eashoa' M'sheekha who wrote (40036)	9/4/1999 3:21:00 PM
From: Alex	Respond to of 116796

Tracing the gold route Is gold still a good investment? (In Black and White, August, 8) was interesting and informative. I would like to add a few historical facts for those interested. In 1750, Mayer Amschel Bauer purchased his father's banking business in Frankfurt and changed his name to Rothschild. His fortunes increased when he came into the good books of Prince William IX of Hess-Hanau. This prince derived a large income from renting his Hessian mercenary army out to the King of England. (These troops would later go on to combat George Washington's revolutionary army at Valley Forge.) Rothschild became Prince William's trusted banker. When Prince William fled to Denmark because of political upheaval in Germany, he left 600 pounds, the mercenary army's payroll, in Rothschild's bank for safe-keeping. The money was then sent to London with Nathan Rothschild (Mayer's son) to start a bank there. Gold was bought from the East India Company for use as security. Four-fold profits were made on paper money loans to finance the Duke of Wellington's military operations, and later, on the sale of the gold which was supposed to be security for the paper money. Later in history, a political figure emerged in the 1920s who would become the President of the USA. He became President during the Great Depression. His political platform was based on what he termed as, ``The New Deal.' Fearing a greater depression, the public began a run on the banks. Many closed their doors by the time Roosevelt's rule was inaugurated. So, the Roosevelt administration asked the US Congress to pass a legislation which would force the American people to give up their gold in exchange for paper money. When the passing of the appropriate legislation was accomplished, the American people were forced to give up their gold for this new paper money called ``greenbacks'. They received $ 20.67 in paper money for an ounce of gold. This sounded fair in the beginning, but shortly thereafter the government raised the price of gold to $ 35 an ounce. In short, the government (during the Great Depression) had robbed the American populace of over $3 billion. When Senator Carter Glass was asked his opinion on the new development, he replied, ``President Roosevelt, I think that this is worse than anything that Ali Baba's forty thieves could ever have perpetrated.' Sachin Ramaswamy, Mumbai Is gold still a good investment? It never was. If it has ever helped people during crisis, it was only through distress selling, when it has always fetched a price much lower than it is actually worth. Gold is also one of the commodities which form a part of the social evil called dowry. And wearing gold also is a loss because the amount of the metal we lose in daily wear and tear amounts to tons. So, the world should resort to some other form of capital reserve and sell the gold that is in store. People should be educated about the alternative, profitable ways of investing money, and should be discouraged from hoarding gold. A Jacob Sadayam, Vellore timesofindia.com

To: Eashoa' M'sheekha who wrote (40036)	9/4/1999 9:04:00 PM
From: Zardoz	Respond to of 116796

I Take It All Back; Hutch..you're an idiot. You want to prove this: Canada has relegated itself to third world economic status and appears to the developed world as no more than a butt snorkelling American wannabe.They even quote their reserves in US gunbucks.Just a matter of time now till we hand over the whole enchilada to our " friends " South of the border. Nahh, I bet you can't. Funny isn't it how anyone with the name Taurus in it can't think past sardonic verbiage without giving one iota of prove. So are you and Lucretius Taurus related? Where as I can point to OH so much prove: members.home.net members.home.net members.home.net This also demonstrates partially why the POG is heavily dependent on the CDN dollar. But you'll miss it, cause you think I'm an idiot. And this is sad, cause you'll get burned yet again. Many say the Gold markets are this animal that none can claim to fully understand. I say they are full of shit. You just don't want to understand. Like GATA it's easier to blame others. Stocks go down, blame the fund managers. Gold goes down, balme the bullion banks, hedgers, speculators. Never blame yourself, no, that would be too easy. Gold goes to $850/Oz, and you'd bitch about it stopping at that height. What is fair value? Obviously to many, it must be based on price of exctraction... Well that has come down greatly in the past many years. So let look back over OHHHHH so many post to my first one on GPM: To: PaulM (6259 ) From: Hutch Monday, Jan 19 1998 6:49AM ET Reply # 6262 of 40039 Guess how I spent my weekend, reading every post in this thread. 1) M2 increase is directly related to Greenspan attempt to add liquidity to currency to prevent a rapid rise in the US Dollar. Hyperinflation. It's the ratio of M2-M1, that's important. 2) A rising US dollar causes the POG to decrease. Commodity deflation. 3) Currency fluctuations play more on the POG than short covering, hedging. Any spike due to covering will be short lived. But a decreasing dollar could cause a gold rush. Whether you treat GOLD as a currency or currency as a commodity, they are in essence the same. Gold has never deteriate, or inflated ever. Only currencies can change ratio's with reference to gold. And since silver is a more liquid currency, it suffers from the Fiat currency effect. 4) The POG will deteriate over the next few months, as more Banks in Japan will be forced to claim bankruptcy. Right now the bubble in Japan is being propted up on promises. Wait for those promises to break, and the Yen/USD to go to 160-190 Yen/USD. The Japanese investor won't repropiate their investment, but disinvest into other countries allowing the home investor take the brunt of the pain of restructoring. Japanese Depression 5) The most recent rise in the price of gold was either caused by new future option, or central bank currency speculations. I chose the later. Gold will continue down below $240.00 with oppertunity all along the way. Even TrizecHahn is considering dumping gold stocks. #reply-3201872 Gold dropped another $1.20 in the time I took to write this message. Taurus553, nothing's changed. Japan is still in denial, gold still going down. US dollar is still primed to climb. Gold is a currency, and currencies are a commodity. I still see lower lows coming before OCT, and THEN maybe just then highers lows in Nov. If it makes you feel better to call someone an idiot, run to your nearest mirror and let loose. Even the most recent touting that GOLD does best in inflation is wrong. {inflation is much higher now then 1 year ago?} Well not true. It's only when the US FED is ahead of the Yield curve that gold goes up, and that is in deflationary times. Hutch. PS: Now prove that I'm an idiot! Ever bull market in gold has thus resulted in $254 an TOz. So many here have been wrong so long that even the probabilities have become on their side. Yet the Odds are, they are still wrong. Some day you'll learn, but first you have to open your mind. Yes, I'm a sarcastic person, I belittle and mock many here. That's because THEY DON'T THINK. So a splash of cold reality is required.