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To: AllansAlias who wrote (76267)6/19/2003 6:39:24 PM
From: Perspective  Read Replies (3) | Respond to of 209892
 
Yes, the risk/reward is IMO the most important part of a trade, and the historical situation with gold presents a compelling risk/reward: extraordinary potential reward with very limited risk. Reflation is successful, inflation goes up, gold goes up. Reflation is unsuccessful, Fed devalues paper even further, gold goes up. People look for hard assets, gold goes up. And with the unbelievable lack of common wisdom about gold and the smart, seasoned types that are into it, it is very appealing indeed.

Only thing more appealing is commodities, but I haven't yet figured out good ways to get involved in a buy-and-hold fashion. Got one or two mutual funds, that's it. Talk about your underappreciated sectors...

BC



To: AllansAlias who wrote (76267)6/19/2003 7:56:07 PM
From: yard_man  Respond to of 209892
 
true and generally I like the approach of low risk of loss/ high risk of gain <g>

just have strong convictions about the macro scenario here

have you considered silver futures?? If gold does take off, I can't imagine silver staying put and what can be the downside to silver -- price is already well below cost of production -- there is a supply deficit and it is not as "political" as gold ... that's my half-baked take.