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Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (2365)	1/1/2003 5:16:09 PM
From: que seria	Read Replies (3) \| Respond to of 5423

JW CB: I'm interested to know what you think of the risk of the national gov't banning private ownership of gold, once again, to eliminate the competition. It behooves those expecting 4 figure AU to ponder the risk, because the evil leaders aided by dishonest advisors you mention, with political cover from the ignorant press/media you cite, are surely capable of that. How could this risk be anything other than real and significant, if the gov't leaders are evil and their advisors dishonest? Add to such a sorry predicate that they have both precedent (from Roosevelt) and probably existing "legal" justification (I expect the enabling legislation for the Exchange Stabilization Fund or other legislation will be read that broadly by courts; if not we'll see an executive order alone on emergency grounds). A currency being a national gov't's last claim to legitimacy (in its terms), you can expect our national gov't will act like cornered rats when their generational Ponzi scheme runs out of contemporary players with extractable assets, gov't bills have to be paid, the dollar is hammered, etc. Now I doubt banning gold ownership will occur for a long time if, as you have recently surmised, the rise in POG occurs gradually rather than in great and sudden leaps. So I'm a happy gold stock owner with currently a very slight concern about this massive risk (in magnitude, not probability) to my investment. You can have a market in illegal goods--it is done worldwide--but it is hard (short of social/economic/legal breakdown) to preserve the value of one's investment in the banned good if that value stems from de facto status as real money, but its value can't be realized or even preserved because the good (gold) can't lawfully be owned or exchanged. Even if gold is banned, the ban will ultimately be reversed, but I'm investing for my retirement here, not my (nonexistent) grandchildren's! I'm not looking for a legal answer; I can get that myself. I'm interested in your own view (and that of anyone else who cares to chime in), used in your own investing decisions, of the odds of a ban, and the best means of avoiding financial harm if it occurs. I'm in gold stocks, nearly all Canadian, with no physical, largely for leverage, but with the view that the US can't (well, won't) seize foreign stock holdings just because the companies produce a good that the US doesn't allow to be privately owned. The key is what the rest of the world would do. I hope and expect Canada would not be such a lapdog as to follow the US lead, although the pressure to do so would be high. Surely Canada would see the lunacy in yoking its fiat to the fiat down South. If Canada and/or the EU ban gold ownership, all bets are off and we should have just been shorting major markets. Betcha a 75-90% investment gain tax will take care of that profit outlet (evil speculators!). I just hope it's never retroactive! BTW: if you read this far, 4figureAU, thanks for creating and maintaining a great board with your continuing efforts!