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

To: goldsnow who wrote (51553)	4/15/2000 11:04:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 116759

Goldsnow, What is the purpose of having inflation indexed bonds? It strikes me that the purpose is to offer a higher rate of return that tracks the rate of inflation, ABOVE AND BEYOND the normal yield of non-indexed bonds. You can't pay for these bonds with gold, but with US dollars. Other nations have not particularly embraced offering indexed bonds either so there is little competition out there for US indexed bonds. The US treasury says they are taking in more money than they are spending so there is room to offer indexed bonds and pay that extra interest. Now call me stupid, but if I'm being offered an interest rate that effectively neutralizes the depreciation of my bond holdings, I'm certainly not going to be willing to speculate in gold when I have the security of a guaranteed interest payment. Only were things to suddenly get out of hand would I be inclined to go into gold. And that would only be a temporary decision based upon the prevailing psychology of other investors (trend is your friend). Regards, Ron