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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (62648)	6/3/2006 9:40:27 PM
From: GST	Respond to of 110194

<Gold is sterile> Gold is positional -- which means if you have it I can't. That is the source of its value, assuming more than one person wants it. If you look at who wants gold, it is in no small part people who live in parts of the world with little faith in their governments -- and the future of the US dollar would suggest that the US will soon be among the reasons to own more gold rather than less. Now, is it useful? Hardly. It is purely positional. There was a time when yhoo stock played the positional role for speculators. Then real estate. Now gold. That is the part of the market that is unstable. To the extent that speculators rule the market, gold is a bad bet. To the extent to which wealthy risk averse smart people own gold, it is good. You decide for yourself. For me it is a mixed bag and we saw speculators bail in the last couple of weeks. But overall it seems the future is likely to be one where it will vastly outperform any dollar denominated financial asset.

To: Tommaso who wrote (62648)	6/3/2006 10:32:55 PM
From: shades	Respond to of 110194

Scrooge McDuck If the masses want to use plastic cards, digital money, green paper, or shiny metal - the hundreds of thousands of dilbert managers steer the lemmings in the right ways - and you are all alone with your silver coins at the pawn shop like my friends were in cordele last week with the guy laughing at you that he doesn't take that junk - you are looking pretty foolish. Captain Nemo was able to make it outside the resources of the Herd - but most of us are not that resourceful. I hear General Chen doesn't even clean his own house - has to hire a maid slave - so much for being self sufficient.

To: Tommaso who wrote (62648)	6/3/2006 10:39:20 PM
From: Taikun	Respond to of 110194

< No. I thought precious metals were good to eternity. I was terribly wrong and the guy getting 12% was terribly right. I lost half my net worth holding on and on to gold and silver> Would you still hang onto your oil and gas trusts if US bonds start yielding 12%?

To: Tommaso who wrote (62648)	6/3/2006 11:57:28 PM
From: RJA_	Read Replies (1) \| Respond to of 110194

>I guess my big lesson was at the end of the last big boom in gold and silver, when you could buy U. S. bonds paying 12%, and someone I know said meditatively, "That's a pretty good return." >Did I listen? No. I thought precious metals were good to eternity. I was terribly wrong and the guy getting 12% was terribly right. I lost half my net worth holding on and on to gold and silver. >So there does come a time to rejoin the entrepeneurial human race and buy either stocks or bonds that pay a return or represent ownership in an enterprise. I think your point is well taken. I was also in the last run up but bailed soon after the peak. I also thought that PM were good to eternity, but the market begain behaving differently, and I try to listen when the market seems to know something which I do not. Never the less, it seems to me based on the amount of money creation since 1980 that we are a still good ways from peak gold.