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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (7389)	9/29/1999 9:19:00 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 12475

The days of gold as an asset are over. You guys are having your last hurrah and it's all because of the Y2K scare. Once the new millennium dawns and people realize that the world hasn't come to an end, you gold bugs will get back to your favorite topic of how the banks and the governments in Europe and America, the financial movers and shakers of Wall Street, and the space aliens from Alpha Centaurus have all conspired to keep gold's price down! <g>

To: SouthFloridaGuy who wrote (7389)	9/30/1999 12:39:00 PM
From: Shivram Hala	Read Replies (1) \| Respond to of 12475

> gold to this day is the best barometer of inflation. > if you think inflation is dead, then yes, gold prices will > remain as they are at the very worst. in the meantime, > gold acts as a stable reserve and an excellent hedge for a > government to use. I think gold until this day was the barometer. I wonder why the U turn (WB selling gold reserves), but one of the reasons is that less gold would be made available for lease, so shorters were to be left high and dry. The price rise was due to short covering (note the rumours on tiger management that was supposed to have short about 15m ounces of gold). The days of Gold are getting over and the price of gold will only depend on the demand/future demand and what it's being used for and not on it's value as an inflation hedge). The lustre in gold was lost because of western nations selling theirs. Gold has value now because of the demand in asian countries and for jewelry here. Gold's use I think will be only as a commodity. When asians give money in weddings instead of gold, is the day when gold will tumble. I think they are better off in quietly selling their gold and buying t-bills, g-bonds ... or better yet - LAND. The probable U-turn may be because that most asian nations hold reserves in gold, if the price were to tumble, then these economies would face a major setback in their recovery, which would affect the western countries too.