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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (3576)	1/18/2006 10:55:38 AM
From: Bid Buster	Read Replies (1) \| Respond to of 218047

Then how do you explain the rise in gold during the recession of 2000?

To: Maurice Winn who wrote (3576)	1/18/2006 11:39:05 AM
From: elmatador	Read Replies (2) \| Respond to of 218047

We all love inflation. We just hate its effects. To understand gold you need to understand reserve of value and you need to understand inflation. When there is steady inflation is good. Keep inflating nicely for a decade and pretty soon all you have is expensive and all others have is cheap. That's why you have G7 countries. They have had a controled inflation, plus a set of mechanisms which they could do way with it and the right set of circumstances. You don't think it was hard work only that made Japanese and German miracle, do you? What lousy countries did was to say: "Voila! For us to get rich we just have to inflate, i.e., print money 'com gusto'" Lets back to gold. If there is no inflation to increase the value of waht you own, you sell it and buy goods that can be inflated. Shares of tech in the late 90s is a typical examples. After the crash of 2000, burnt investors put their money on what they see and touch: Houses and the housing marlet inflated. Money then went to commodities. The China pull inflated metals, and other commodities. What TJ says is: without tech, without housing, nor commodities, gold can be inflated a lot, as a reserve of value and as a mechanism of inflation. Because veryone loves inflation.

To: Maurice Winn who wrote (3576)	1/19/2006 12:30:26 AM
From: TobagoJack	Read Replies (1) \| Respond to of 218047

hi maurice, i think you read wrong and believe wrong. of course a lot of gold mining companies went belly up. else we would not be terming the entire episode "depression". if you take in what the guy is saying, and i actually have no dispute with what he is saying, and check into the historical facts, you would see the truth: hoard physical gold, speculate in only the most well managed and liquid mines, and watch what depression can do, whether of the deflationary or stagflationary variety. the liquid / largest gold mines did fabulous during that time. so, think of a hoard of gold as a private gold mine of 999 purity with zero extraction cost, and 0 pollution. chugs, j