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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (8503)	5/23/2004 1:25:04 AM
From: glenn_a	Read Replies (1) \| Respond to of 313012

Hi Claude. This might be a bit O/T for your purposes, but you commented "it is good to have gold but it can't be very useful in a RRSP. You can't really use it to purchase stuff if needed" Oh, I think I see the distinction you are making as to gold as savings or investment, and gold as use as money. However, re: the "usefulness" of gold in an RRSP (or any registered savings vehicle) depends on the intended purpose. I don't hold gold in my RRSP in the form of the Millennium Bullion Fund for the purposes of liquidity. Rather, I have real concerns about the financial solvency of banking institutions. I have less of a concern about Canadian banks than I would with U.S. banks (to my knowledge, the Canadian banking system was far more stable than its U.S. counterpart in the 1930's), but I have a concern nonetheless. In a chain-reaction derivative meltdown, it's so hard to say where financial vulnerabilities will appear. Consequently, I own gold in my RRSP for safety of principle and preservation of purchasing power. I have a cash position of approx 50% presently in my RRSP (an odd position I suppose for a long-term investment vehicle), but here again only 10% of that is in cash, and the rest is in Canadian Federal Government T-bills as I believe these to offer greater safety of principle that cash on deposit in the banking system. The Government T-bill cash-equivalent position is my hedge against a financial system rupture. Physical bullion is a hedge against the same, as well as inflation. A 15% position in precious and base metal junior equities, and a 20% position in junior O&G companies provide a hedge against "train-wreck" type inflation. And then, I let go and detach. And let life bring what it brings. After all, in the end, it's only money. And no matter what life brings, this too shall pass. Regards, Glenn