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To: shades who wrote (63629)	5/8/2005 7:50:54 AM
From: maceng2	Respond to of 74559

From an investment perspective you really think I should buy gold coins because gold is in 300 year cd's? No, it was just an example where a gold advocate like myself was wrong footed into buying a product that should had gold in it. Technology changes as you have noted in several of your posts. To date large amounts of precious metals (including gold) have been used in electronic circuits. Generally speaking, the more electronics there are, the more precious metals will be consumed. The important point is the special properties that metals like silver, gold, platinum, palladium have. They will be selected preferentially in current and new applications even though the cost of these metals is high. Just the nature of precious metals. Other industrial processes and products will also consume precious metals. Some of it will be recovered, some of it won't. Most gold is used to make jewelry and other art items. Because it is chemically stable and conducts electricity so well, it is very important in electronics. Electronic applications represent a significant amount of the United States’ annual gold consumption, followed by dentistry and a variety of other applications mii.org Now let's consider the forward view where there are 12 billion of us on planet earth. I wonder what the demand for gold jewelry will be at that point? It hasn't gone out of style in a long time. The current trend with fiat currencies is that there is over investment in capacity for industry. Widgets will always be in oversupply and be cheap and plentiful. Thats good I suppose, but I wonder how many widgets will trade for an item of gold jewelry?