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

To: d:oug who wrote (56302)	7/22/2000 4:54:27 AM
From: d:oug	Respond to of 116835

(1) How to Resurrect a Golden Death. (2) egroups GoldWorldNet email problems Josh Wright, GoldWorldNet Moderator egroups.com egroups.com The Near Death & Resurrection of the Gold Mining Industry By Lawrence Parks July 17, 2000 [Start.] Indian Proverb -------------- Sometimes it has to get very dark before you can see the light. Introduction ------------ About 150 years ago..... Is the diamond and platinum strategy relevant for gold? ------------------------------------------------------- It has been suggested..... The diamond strategy cannot be used for gold..... ... Also, there are no central banks with a huge stash of diamonds threatening to dump them onto the market. As to platinum, it is mostly an industrial metal..... Unlike gold, platinum is consumed. ... there is roughly six months' production supply of platinum above ground. Gold, on the other hand, has more than fifty years' production supply above ground. ... a principal use of gold is to facilitate the transfer of wealth over time..... Promoting gold as an investment..... The concept of investment implies some value added. But there is no value added possible in owning gold. Therefore, investment is an inappropriate term. Purchasing gold is really a speculation..... For other commodities ... supply/demand fundamentals. This kind of assessment does not apply to gold..... ... gold, there is about a fifty-year supply above ground. As a result, gold is relatively unaffected by disruptions in new supply. Demand, on the other hand, is potentially infinite. Thus, there is no viable bet based on supply/demand fundamentals. Accordingly, the only feasible bet one is making when one takes a position in gold is a bet against currencies. So, lack of investment in gold really means a lack of speculation against a currency, and to foster investment in gold means to foster speculation against currencies. ... constraint in the IMF Articles of Agreement that prohibit member countries from linking their currencies to gold. They want to protect fiat-funny-money from its strongest competition: gold. ... the reason for this prohibition? It is the US fear of gold as a competitor to the dollar.[3] ... how did the central banks acquire so much gold? In three words, they stole it! ... legal tender laws bring Gresham's Law into play: when bad money is made legal tender, good money goes into hiding..... ... as Robert Pringle points out, it is of the utmost importance to get rid of the restriction that the IMF has placed in its Articles of Agreement that prohibit member countries from linking their currencies to gold. ... there are myriad laws that make it disadvantageous to own or trade gold. For example, in the U.S., if a mutual fund were to earn more than 10% of its profits by trading/holding gold, then it would lose important tax advantages. Partially as a result, U.S. mutual funds hold their liquidity in U.S. dollars or other currencies. Given the large market that such funds represent, it would be potentially significant if these laws could be changed. ... some actions gold producers can take that will revive their industry: Finance operations by issuing gold-backed bonds. Not bonds pegged to the price of gold, ... bonds in which the interest and redemption are payable in gold..... [End.] (off topic) egroups GoldWorldNet forum email problems egroups.com From: Josh Wright Date: Fri Jul 21, 2000 Subject: Forum email problems Problems with the mail is the main reason some members have left this forum. To help with this I will create a eGroup help page at my main site. I will explain the email settings and other options. This page will be ongoing with tips and tricks for using eGroups from myself and hopefully others. When, I get the help site online, I will add the URL address to the forum's link directory. Thanks to all, josh wright