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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: steve susko who wrote (9973)	11/18/2007 12:58:59 AM
From: jimsioi	Read Replies (1) \| Respond to of 29622

steve susko..the story behind gold going from 850 to 250..? Let's see you must be about 30 years old...History for your group begins somewhere after the Beatles, maybe ABBA..Don't feel alone...In talking to Chinese their history begins somewhere after the Cultural Revolution...remember that??? I'll let others and you go back and fill in the gaps, but the short story is that gold was driven higher by rising food, energy and labor inflation and associated speculation, the Iranian revolution and a general loss in confidence in the US and its western allies' ability to maintain global political and financial stability...deja vu all over again?....Paul Volker came in as Fed Chairman and raised interest rates to oppressive levels; the commodity bubble burst, and a 20 year bear market in commodities began... Back "in those days" there were much fewer financial futures markets and free floating currencies with which to hedge risk so seekers of safe haven poured into GOLD and Silver... Probably one of the best risk adjusted investments of the last 27 years was the purchase of US T BONDS in 1980 when rates were around 11% or so...As interest rates declined, the bonds rallied, all the while the holder clipped a great annual coupon... To my mind there are many similarities between 1979-80 and now...only difference is that the Western Allies have less control of the situation...both financially and politically... Might I suggest a little history reading as a substitute for football and other nonsensical US TV... "Dragon Lady" - the last Empress of China- TZU HSI by Sterling Seagrave "The Soong Dynasty" by the same author... and "The Rape of Nanging" by Iris Chang... amazon.com ....that group of books will get you from the middle of the 19th century into the middle of the 20th with a Chinese and Japanese perspective....America from Imperialist /Christian Power to Communist Combatant...