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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Beachside Bill who wrote (258998)	9/4/2003 10:25:18 PM
From: Earlie	Read Replies (1) \| Respond to of 436258

BB: Glad to see you post up your views. That is what the board is for. I am happily ensconced in the other side of your perspective on gold (i.e., "long"), which means that I have a different perspective on it and have some mild disagreement with a few of your points. China is a populous country. Their middle and upper classes are growing, which means the number of folks over there who can afford to buy gold is rising. Additionally, their culture has always placed a greater value on gold than has been the case in our part of the world. To me, their recent moves (public gold markets, etc.) just add to an already burgeoning demand for the "ancient relic". Contrary to uninformed public belief, gold has historically fared well in deflationary times (admittedly, not always). James Davidson has written some good stuff on this. I don't buy your comment that the central banks have lots of gold left. Those countries that provide transparent accounting appear to be down to the dregs. Those that don't (including the US) may have good reasons to maintain their secrecy. (g) I wonder how much gold actually exists in Fort Knox? I also wonder why the authorities have refused demands for an audit over the last few years? From time to time, institutional investors come to view gold as a legitimate "investment class". At the moment, very few hold that view, but there appears to be a slow but significant trend towards an acceptance of this view. Should this trend continue, gold will move much higher than any of us would believe. Personally, I am delighted that most investors are not (yet) terribly interested in gold. This gives those of us who are, a better chance to accumulate. No question that Gold has been kind to those of us who got aboard "early". (g) Best, Earlie