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To: Maurice Winn who wrote (21450)	7/19/2002 5:14:15 AM
From: Don Lloyd	Respond to of 74559

Maurice, The strength of gold is dependent on nothing but the continued value of it in the minds of billions of people. This is correct. In any sufficiently advanced economy, under relatively normal conditions, the existence of a universally accepted and pervasive medium of exchange, against which almost anything can be efficiently exchanged, means that the medium of exchange and the unit of account functions of money are virtually free goods, and do not produce a premium for money over and above its value as a store of future purchasing power. Under this condition, virtually all economic goods can serve as a store of future purchasing power subject only to the intent of their holders. This means that money, gold, silver, goose feathers, etc., can serve on a equal footing as a value store, but are all subject to severe erosion of value should people no longer desire to trade for them. In view of this, it may be that canned goods and can openers may represent the most certain value stores. Regards, Don