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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Jamey who wrote (20929)	5/10/2004 10:52:18 PM
From: sea_urchin	Read Replies (2) \| Respond to of 81130

James > your belief that gold is not a hedge against a lower dollar valuation? It has to be, but not a "special" hedge. One could have hedged with soya beans or oats, for that matter, or any currency. > The USD is floating the world at the present time and all good bubbles deflate, eventually. If interest rates rise, the bubbles might pop sooner than you think. But will that cause gold to fizz? One doesn't know. If the popping is seen as deflationary then cash will be king. That can happen if they manage to prop up the USD. No-one knows what will happen. It's a game of giants. > History proves that FIAT money has never succeeded as a currency forever Paper money is no better than toilet paper. I don't recommend it to anyone and certainly not to hold for any length of time --- unless there is deflation, which there could be, despite all the printing. The game is to find suitable undervalued assets which have the potential to appreciate --- but not in 10 years time. And that's damn hard to do. Right now, with all markets tanking, cash isn't a bad place to be for a while. > Gold has been a currency for 5000 years Sure, but we don't live that long. We need to see results a bit sooner!