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Strategies & Market Trends : CFZ E-Wiggle Workspace -- Ignore unavailable to you. Want to Upgrade?

To: skinowski who wrote (7795)	7/17/2008 12:44:58 PM
From: JW@KSC	Respond to of 41420

Pine Trees and Inflation “True, we manufacture and export the reserve currency” Yes and unless the world becomes disgusted with the inflation we are also exporting, the dollar will remain the Worlds Reserve Currency. Although the Petro-Dollar may go by the wayside. Explanation: “I believe in gold.” It’s sounds funny to me too. I had to rap up the post quickly. I glanced at the time and noticed, I was quickly running out of time, I had to be at the Cape for a Simulation of a Delta IV launch at 2pm. It was 1:10pm , I had to shower and I have a 30 minute drive to the Cape. I believe in gold as an inflation hedged asset and silver too. A very simple case can be made : In 1970 I could take 3 silver dimes and buy a gallon of gas. Today if I take those 3 silver dimes and sell them, I can buy a gallon of gas, and perhaps a Big Gulp too.. ;^) “ However, those who consider gold to be ultimate "True Money" need to recognise that it is also a commodity, with many traditional monetary and non-monetary uses, and its value is inevitably subject to supply / demand interplay. I will agree in part, but what many need to recognize is that fiat currency is little more than a brief experiment in the grand scheme of things and it is still 3 years shy of its 40th birthday. Now on the other hand, Gold and silver have been used as money for roughly 97% of recorded financial history, dating back to the Lydians around 687 B.C.. I agree, currently Gold and silver are subject to supply and demand. Each with a different set of variables. Central Banks do not hold silver, they hold gold which they have been selling into the market to try and keep a cap on the price and also to provide the short fall in supply. According to the World Coal Council, the world mined 2,473 tonnes of gold in 2006….. 77 tonnes less than in 2005. It was even less gold than mined in 2004. Meanwhile, the amount of gold used in jewelry and industry alone topped 2,742 tonnes…… and that doesn’t include demand for bars and coins which would include ETF’s. That means, by necessity, at least 269 tonnes had to be sold into the market by central banks out of their dwindling hoards, a practice that cannot continue indefinitely. Non-monetary uses Industry, electronic circuits i.e. computers. Did you know it’s cheaper to remove the gold from computers and process it into gold bars, than it is to remove it from the ground? And speaking of removing it from the ground, I always like to look to experts in their field, whether it’s someone with 18 years experience working on Porsche’s rather than the nearest auto repair chain store… or in the case of gold, someone who was the CEO of Gold Corp. for 18 years, and took it from a $50 million dollar company to a $15 Billion dollar company. He has sense left Gold Corp. and started a couple of Gold exploration companies, Mr. Rod McEwen. I could read a two hundred stories and hype on why gold will go to $2,200.00 an ounce and not convince me it will happen. But when an expert in his field states it’s going to $2,200.00 an ounce, I tend to listen intently, especially when he says it may go as high as $5000. before settling back down.. Here’s a link to his website, bio and video interviews in 2007 on 4 financial shows CNBC and Bloomberg Europe. robmcewen.com Back to Non-monetary uses and also to end on a lighter note : The last Titan IV Rocket was launched on 2005. But the amount of gold used for electronics, in the rocket and the Satellite was approximately 40 pounds. The mighty titans were used for launching Military and spy satellites, as well as a Titan IVB launched NASAs Cassini Saturn orbiter in October 15th 1997. Earlier versions were used for our Cold War nuclear missiles, spread about the country in silos, perhaps in a corn field near you… Of course not all launches go perfect, I had just returned to the Space Coast from vacation and was not at working this Titan IVA launch and was at the beach to surf and watch the launch when this occurred. youtube.com Damn, it's 12:35 already.... JW@KSC