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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (768)	5/6/2003 1:00:16 AM
From: LLCF	Respond to of 4912

<An earlier post stated that saddam held gold, I believe he used a figure that was 60% of his dollar holdings.> No I didnt. I stated what Sadaam does is irrelevant in my decisions. I don't think he is very smart :) <Scarcity is my favorite component of value, but only when its compoundable, and that is where the gold equation breaks down. Spend a great deal of time thinking about this and you'll come to the same conclusion. > No, when one spends a great deal of time thinking, he spends a great deal of time massaging and rearranging the same info that is already in his head. Thinking brings no new light into the equation. That said, your compounding point is interesting. What is $US/GOLD compounding comparison done lately??? Right, bullish for gold. As you know, nothing is static, it's dynamic. Right now the dynamics of compounding are bullish for gold. <Gold isnt scarce enough nor is it compoundable, to the extant one would require; to repeat the performance stories as the two cited above...not even close.> No, you'd buy a company leveraged to the price of gold. You'd buy gold vs holding a currency, not owning a company. As for scarcity, it's plenty scarce. If 5% of all US portfolio's were in bullion it would probably be worth... well, you get the picture... one thousand, ten thousand, what' the diff. <If gold were valued at $40,000.00 dollars an ounce and it reverted to a metric where it was traded as drams or grams....your story could come true. > You're kidding right? <But it is a fantasy to believe gold could be anything like a currency in an integrated global economy like we have today. > Naw, I don't think any one is going to use it as money... but it IS money now and trades like any other currency, so I don't care. <Face it, GOLD is what it is, a useful commodity with limited appeal.> That opinion IS priced into current comex closing price, yes. DAK