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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (11459)	5/23/2003 10:37:54 PM
From: loantech	Respond to of 39344

OT Liz, We will have to ratchet up the bet a bit. I was at costco today to get a fan (found a nice one) and lawn lounger, (also found a nice one). Was buying a fume blanc Robert Mondavi, and a guy was next to me who bought 2 $249.99 bottles of ???LATOUR?? a French Bordeaux. No doubt taste good but I like the Rutherford BV well enough at about $18.00 at costco. Hope you are having a nice weekend. Tom

To: Elizabeth Andrews who wrote (11459)	5/24/2003 1:06:09 AM
From: NOW	Read Replies (1) \| Respond to of 39344

why the change of heart?

To: Elizabeth Andrews who wrote (11459)	5/24/2003 5:11:49 AM
From: E. Charters	Read Replies (1) \| Respond to of 39344

I know I am braving Liz's attack Pekinese by stating this, but gold is on record as advancing in a deflationary environment. From 1929 to 1934, gold rose from 20.67 to 35 dollars per ounce. It was about $32.33 in 1933, which precludes the oft held assumption that gold only got to 35 dollars because Roosevelt pegged it there. 1932 had a -10.44% inflation rate,( a negative sign indicates it was in fact a deflation rate) and 1933 had a -4.91% rate. Still, gold rose on its own. The reason given by some authority, is that gold in effect replaces money, which is scarce, so gold rises in demand in that "coveted" role. Normally a commodity being bartered for the scarcer resource will fall in value, but we see that in this instance gold takes on the monetary role, so its value reflects that it is the scarcer commodity when compared to other things, even the dollar. EC<:-}