Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: long-gone who wrote (43792)	10/25/1999 11:57:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 116820

I guess I should thank you for your efforts to "educate" me on the merits of specimen gold. Thank you. However, specimen gold (engraved in quartz, found in a pot at the end of the rainbow, or in a pile of cattle dung, it does not matter to me) is an oddity; a thing of beauty; a piece of natural art... etc, etc, etc. It is not buillion, transferable between parties for the payment of debts. And I don't believe I ever said that gold has "little worth". More correctly, it is worth whatever people are willing to pay for it. And over the past 10 years people have been willing to pay less and less for the pleasure and honor of owning gold. In fact, owning gold over other assets inherently makes the statement that those other assets which represent more tangible economic factors like manufacturing, technology, or financial/economic policy, have little worth. And that is clearly not the case since ANY ASSET is worth what people are willing to pay for them. So every economy in the world could be going gangbusters and have all of their financial houses in order, and some sudden spike in the price of gold could suddenly create self-doubt or the belief that things aren't quite as alright as they were before the spike in the POG. And this spike might be the result from some sudden scientific or technological use for gold where demand suddenly increases dramatically, yet supply will remain the same because the CBs have monopoly control of the substance. But the result would not be that gold has suddenly found a wonderful new industrial use as a commodity. It would result in the undermining of entire currencies because people falsely believe that the POG is a reliable warning signal of inflationary pressures. As Hutch clearly stated, the ECB is still maintain its previous gold sales, and the Swiss Bank is accelerating their sales from a span over 10 years, to over 5 years. And while I believe the ECB made the statements they made in an attempt to attack the strength of the US dollar, it is clear that they still plan on selling quantities of gold along the current schedule they possess. The only major difference is that apparently they will not engage as heavily in the leasing market, thus reducing their exposure to speculative short-selling. Gold is pretty Richard. I'm even willing to admit that. And from time to time I may purchase something that contains at least 18K of the stuff. But as a currency is leaves much to be desired and its time has passed and been replaced with other financial instruments and more liquid international financial markets. Gold worked in the past because of the illiquidity and uncertainly between various currencies. Communications were slow and price or value fluctuations in various currencies were hard to manage. However, now people can convert currencies at will, either into other currencies or other commodities, depending on where they feel their best storehouse of value lies. This financial flexibility severely undercuts the utility of gold as a financial medium and will only continue to subvert its use as silver was subverted. The greatest thing that gold bugs fear is that CBs would dump all of their gold onto the market, essentially destroying its value and demonetizing it. So don't try and BS us with this connived belief in specimen gold. I can show you paper specimens or rare stamps that ounce for ounce far outvalue your specimen gold. Regards, Ron