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

To: Claude Cormier who wrote (53)	2/15/2002 9:53:39 AM
From: maceng2	Read Replies (2) \| Respond to of 203

And what if this is the long awaited bull market? I sell some gold miner shares all the way up, and BTD if there is a pullback. A rough calculation for my last DROOY share is to sell it for $10k. It may never get there of course, but I expect market conditions would have changed radically enough to change my mind about gold as an investment. I doubt if that will be for a long time though. Right now I see gold miners as being a good investment, but that is strictly imho, and I am no expert...just a J6P.

To: Claude Cormier who wrote (53)	2/16/2002 11:10:54 AM
From: Tommaso	Read Replies (2) \| Respond to of 203

This site includes a chart I never saw before: "Hour of Work Needed to buy the Dow." cross-currents.net It might be interesting to consider "hours of work needed to buy gold." In 1956 I worked for the Forest Service putting out fires, and was paid no overtime, no matter how many hours we worked. Just a flat $1.50 an hour. If gold (which I could not have bought in this country) was then fixed at $35 an ounce, I had to work about 24 hours (asI sometimes did) for an ounce of gold. Using an "inflation-counter program" [http://www.westegg.com/inflation/infl.cgihttp://www.westegg.com/inflation/infl.cgi] I find that my $1.50 is about $9.60 today. If I multiply that by 24, I get $230. What that tells me is that I had better get out of the gold market quick as soon as I have substantial profits. I did not expect to reach that conclusion when I began typing this message. But it now looks to me as if gold already has a pretty good inflation premium built into its price. I suppose one could argue that the amount of gold in the world per human being was larger than it is now, but to argue that, I would have to know some more figures, so I will look those up. census.gov World population in 1956 was about 2.8 billion. Now, it's about 6.2 billion, an increase of 2.21 times. Now, does anyone know how much gold was available in 1956 and how much is available today? OK, here's a site: fgmr.com It seems to show that about 1956 there was about 55,000 tonnes of monetary gold, and that by 1996 that was reaching 80,000 tonnes. Here's a site that indicates total production up to 2,000 at 140,000 tonnes. busrep.co.za So far, it appears to me that world gold supply per person is somewhat less in 2002 than in 1956. To be continued . . .