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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (5573)	2/12/2002 11:52:09 AM
From: Joan Osland Graffius	Read Replies (2) \| Respond to of 33421

David, You are correct that holding US$ would have been the been the best for Aussy's. The reason for this is the price of gold has gone down. An Australian pays for gold relative to the price of gold in US$ which is about 2x's in Aussy $'s today. My comment was that gold is an alternative to holding a countries currency "during" devaluation. How many Aussy's have a bank in their back yard where they can open a US$ based account. We traveled in rural areas of Australia and people told me these kind of accounts were not available at the local banks. IMO, the Japanese that purchased gold prior to or on the front end of the recent devaluation would help them to maintain their purchasing power. The risk of course is that the price of gold goes down. I suspect their are a few people in Argentina that would be better off if they had bought gold and buried it in a cream can in the back yard. <g> Do not know anyone who can see in the future but during times of financial stress hard assets seem to be a reasonable alternative to paper assets. Gold is just one asset in this class of hard assets. Joan