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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Gary D who wrote (2138)	11/16/1997 5:36:00 PM
From: Gary D	Read Replies (1) \| Respond to of 42834

One of today's callers was a comedian who insisted that over time, gold has been a wonderful store of value. Bob mentioned his total lack of interest in gold as an investment, pointing out that since '80 (or was it '81?) gold has lost 70% of its value, while the Dow is up about 10-fold. The caller seemed to insist that this 17-year period doesn't matter because that's too short a period of time. I suppose a 70% paper loss in any investment would be negligible to this clown. To someone who believes gold is such a great store of value (and protection from inflation) we shouldn't just cite this 70% drop in the price of gold--as a courtesy to them we need to adjust for inflation: Since the CPI is almost exactly double what it was in 1980, we should say gold has lost 85% of its value, in real terms. What an ""investment""! (Is my arithmetic correct?)