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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: frankw1900 who wrote (98456)	4/28/2001 12:37:30 AM
From: John Pitera	Read Replies (2) \| Respond to of 436258

US currency is backed with the "full Faith and credit of the United States" Obviously we could have another period of pronounced inflation, where it takes twice as much currency, ( US or other major currency) to buy the same amount of a product or service as it did just a few years before. The 1970's bore out this reality. Paper instruments have a party on the other side. Any Party can decide to default..If China beats the US in a Nuclear War next month and decided to negate Dollar denominated Assets... those assets and paper would be worth little....... anything is intellectually possible. We just saw the NASD go down 70% in a year, which was implausible to most everyone except to some of these people who are talking about a renewed interest and price appreciation of precious metals. Gresham's Law was that bad money drives out good money..... coins were clipped and reduced due to the fact that they were hard fixed money rates instead of paper. The wise men came to visit Jesus, with gifts of Gold not paper assets. And Myrhh and Frankenscence. John

To: frankw1900 who wrote (98456)	4/29/2001 10:34:04 AM
From: At_The_Ask	Respond to of 436258

<Gold doesn't carry an obligation because it's, quantitatively, not good enough money.> Gold doesnt carry any obligation because it is what it is. The dollar or any paper currency has little basis in reality; it is what you believe it is. Gold has value because there is a limited amount of it and it takes considerable effort to find and retrieve it. It cannot be manufactured unlike paper currency. <By the way, would producers sell forward if they expect the price to go up any time soon?> By selling forward producers hedge against the possibility of falling prices making it impossible to meet minimum required cash flow. Would you put all of your money into nazdaq futures when the possibility that it could go down would cause you to go bk? Farmers sell short some of their crops each year to ensure they can operate next year just in case grain prices fall.