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

To: At_The_Ask who wrote (72)	2/16/2002 7:42:56 PM
From: At_The_Ask	Read Replies (1) \| Respond to of 203

This guy must be a goldbug. He has a lot of bookmarks here on gold. A pretty good resource. Subject 23403

To: At_The_Ask who wrote (72)	2/17/2002 11:28:28 AM
From: Tommaso	Respond to of 203

Thanks for the link. My guess is that in 1956, $35 an ounce might have been about right. Dollars were still soundly backed by gold, and U. S. citizens abroad could buy gold with those solid dollars. In the late 'fifties, there was a tremendous and justified demand for dollars as the most solid currency, following devaluations by many European countries and continuous inflation in most. After the monetary expansion of the later 1960s, as you say, the price became completely unrealistic. But the real price was still low. There were ads in the Wall Street Journal for bags of gold nuggets at something like $44 an ounce. Those were legal. Legalization in the U. S. helped set off the gold bubble. Recent monetary expansion, however, makes the policies of the late 1960s and early 1970s look extremely conservative. And as Keynes said, when inflation begins, not one person in a thousand understands what is going on. I would say that at this point it might be one person in ten thousand.