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.

Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (833)	6/28/2002 10:23:51 AM
From: Jim Willie CB	Respond to of 89467

Jim Grant (Interest Rate Observer) on gold prospects: - "In no field of endeavor is impossibility more common than in the investing field," he proclaimed at the recent London Bullion Market Association Gold Conference in San Francisco. "My assignment this evening is to discuss an impossibility even stranger than the bust that followed the boom. I mean the rehabilitation of gold. - "Demonstrably, there is no worse investment over time than the ancient monetary metal. Gold is cash, perfectly liquid but non-interest-bearing. ...through almost 200 years of American history, equities appreciated at a compound annual rate of 8.7%, bonds at 5% and gold at 1.3%...Interest not earned on a single gold coin struck off by the Roman mint would by now cover a sizable land mass with $100 bills. The world could have retired on it...As an investment asset, gold is forever waging a rearguard action against compound interest." - Despite this considerable handicap, Grant is bullish. That's because he is unequivocally bearish on the dollar. - The dollar is nothing more than an "act of faith," he says. "The monetary competition between gold and non- gold is probably as old as the first gold coin and the first banker's promise. Many contend that non-gold has scored a final victory and that monetary history is over. Don't believe a word of it. My bet is on the impossible." -end-