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

To: GST who wrote (51544)	4/15/2000 5:54:00 PM
From: Hawkmoon	Read Replies (3) \| Respond to of 116764

By that standard, if I buy 100 lottery tickets a week I am "saving". That is gambling, GST. Obviously if you construed my comments as a comparable to playing a lottery or going to Vegas, it is also quite likely that the reason you use an acronym as a handle is due to your inability to spell your own name. I really hate it when people like you take my comments so far out of context that it borders on utter stupidity. When I buy a share of stock, I become a part owner of that company until I sell that stock. If my company prospers, growing revenues and earnings, the value of my stock should also increase in the public marketplace. If I buy a lottery ticket, I buy one opportunity to WIN a jackpot of money accumulated from sales of other lottery tickets (minus the management fees and percentage the govt takes). Buying gold is dictated by supply and demand. There is currently lower demand than existing supply (in the form of Central Bank holdings and increasing mining production efficiency). But buying gold, betting that it will appreciate in this relatively benign inflationary period, is tantamount to gambling. This is made even more of a gamble by the existence of "better games" in the form of inflation indexed bonds that increase their yield in line with the current inflation level. Only if we saw hyper-inflation in the US economy would gold be considered a must have in one's portfolio. Btw, anyone who bought gold at $800/ounce saw their investment decrease by almost 100% within a few short years. Gold doesn't prosper. It generates no earnings or revenues, it doesn't disappear or perish, so every year more of the substance must be absorbed by the market, and finally, there is great cost involved in storing and moving it. Buying Gold is an investment in some future catastrophe or global uncertainty where nation's economies, or the current finacial system is disrupted grievously. As such an investment against global financial entropy, it certainly has a place in people's portfolios (although I wager that in such an event, food, oil, and other physical commodities will be worth more). However, to start jumping or doing handstands about buying gold or gold stocks when we have a mere one month's data indicating a slightly increasing inflation rate is the height of foolishness. Regards, Ron