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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (2451)	10/25/1997 10:21:00 AM
From: Bucky Katt	Read Replies (1) \| Respond to of 116866

Tommaso-- If your statement were true, Microsoft and Intel would not generate the profits that they do. Think for a moment--msft can produce a copy of Windows 95 system software for less than a dollar, yet they can sell it for $35 or more at the wholesale level. Keyword here is supply and demand. Everything that is mass produced has now become a commodity. Gold has ALWAYS been one. The real problem with gold is it has been talked down by just about everyone. Gold has not changed it's value in 5000 years. The psycology surrounding gold does change. We are in a low sentiment state for gold right now, which equals not much demand, obviously. WJ

To: Tommaso who wrote (2451)	10/25/1997 12:27:00 PM
From: Richnorth	Read Replies (1) \| Respond to of 116866

You have not factored in the costs of exploration for, and costs of construction of, gold mines. Also it is not reasonable to assume that all gold mines will be able to produce gold at $US150/oz for an extended or indefinite period of time. Don't forget that some mines have ores that are richer in gold than those of other mines. Also their reserves will run out and exploration for new mines will be necessary. When this is taken into consideration, it is easy to see that an ounce of gold costs much more than $150. There is no doubt that western governments, and particularly those of the "new era" persuasion, are working collusively to disabuse their citizens of the notion of the monetary worth of gold by subtle or opportune means. Because "paper money" which can be "created out of thin air" seems to make for greater flexibility in carrying out their politico-socio-economic agenda. It seems that this is not only pragmatic but also practical (do-able) so long as they don't go overboard. But history has shown that politicians are human and highly prone to making mind-boggling mistakes! And like everyone else, they are subject to the Law of Cycles. Inflation will sooner or later return! And gold will have its day in the sun! Why governments dislike the gold standard is best summed up in the words of Alan Greenspan:- "The abandonment of the gold standard made it possible for the welfare statists (government bureaucrats) to use the banking system as an unlimited expansion of credit. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation... Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process." Alan Greenspan