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To: pater tenebrarum who wrote (122872)	9/17/2001 3:04:34 PM
From: Wyätt Gwyön	Read Replies (3) \| Respond to of 436258

the thing i don't like about the gold story (other than the speculative one) is that gold seems a very narrow way to hedge the fiat currencies. that doesn't mean inflation won't happen if the govies print us to oblivion, and that doesn't mean gold won't benefit as a result. in that case, though, other commodities should also benefit. this is true if you look at history--during the high-inflation 70s, commodities as a whole did remarkably well. in fact, i believe the GSCI (Goldman Sachs commodity index) outperformed the S&P500, the EAFE, AND gold through the decade (not sure about gold, but i think it's correct). therefore, i would think a better, more diversified hedge against fiat currencies would be a broad basket of commodities. i like the risk/reward proposition there vs. just holding gold. as is the case in general with equities, diversification across asset types is preferred over having all your eggs in one basket from a risk/reward perspective.