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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (68370)	9/29/1999 11:03:00 AM
From: Merritt	Respond to of 132070

Wayne: <<I think that a lot of people that look to gold as an alternative believe that virtually all currencies are being debased.>> See: www4.techstocks.com

To: Freedom Fighter who wrote (68370)	9/29/1999 8:03:00 PM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 132070

Wayne, I think that a lot of people that look to gold as an alternative believe that virtually all currencies are being debased. They are to some degree or another. But that is only half the picture. Currency pays interest while gold does not. As long as the interest return exceeds the currency debasement then the total return on currency exceeds non interest bearing gold. If the gold council really wants to support gold as a store of value it should work with a financial institution to develop an interest bearing gold deposit. They are also a very cynical group when it comes to government statistics like the CPI. So they may not trust the apparent real returns on bonds. bills etc... I'm pretty cynical about government as well and have a natural distrust of their statistics. What I do trust is free markets and price action. The last twenty years of price action has given empirical evidence that gold has ceded its place to the dollar. If the market thought inflationary policies were being pursued the currencies would be punished. I know since I've spent the last twenty years as part of the global lynch mob <g>, I still won't risk going to Mexico. The market is very sensitive to these issues. I believe there is significance to the fact that the peak in gold and subsequent long cycle bear came shortly after the 79 support package (which I described earlier). Henry

To: Freedom Fighter who wrote (68370)	9/29/1999 10:58:00 PM
From: Simba	Read Replies (1) \| Respond to of 132070

Wayne: Another reason people hold gold in SEAsia is that they use it for making Jewelry and like to wear them more than in western nations. They also like to make only 22 Karat unlike the 14 Karat jewelry in the US. This consumes more gold. It is true that they are cynical and don't trust governments, politicians and many human systems like banks and currencies. Typically the inflation has been high in these countries and they see their paper worthless. Clearly one cannot expect them to wear soybean necklaces however high its spot price is :-)