Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John Barendrecht who wrote (3388)	11/21/1997 11:54:00 PM
From: Terry Rose	Respond to of 116815

The article is definitely biased toward lowering the value of gold as a monetary asset when it is described as just another commodity. The article entitled yellow peril is misleading when it states that it was written by Federal Reserve authors, but ends with the disclaimer that it may not be the opinion of the Federal Reserve. I am pretty sure that this is a report written by a junior member in a regional Reserve Bank that was heavily criticized by upper management. The main reason gold is valueable to the Central Banks is that it is a rare hard asset which is why the demand is so high. Also, the current price is what it is, because that is where they want it to be. They are currently holding the price in a narrow trading range since the Swiss announcement. They have a monopoly of a rare asset, and have no desire to give this up. They can also make a good profit now by dealing in options or derivatives. Always remember these Central Banks are run by banking professionals.

To: John Barendrecht who wrote (3388)	11/22/1997 7:46:00 AM
From: Bobby Yellin	Read Replies (3) \| Respond to of 116815

I do like your example about the minivan..wonder how many others can give examples similar.. also like your point about the Asians.. I thought that article by the Economist was one of most narrow minded pieces yet..(I could be showing my ignorance) So far in my book..there is no country that has yet to show superiority in managing their money..who knows what is being printed etc..so what if the Europeans group together and form a common currency ...with their high unemployment and high costs how will they be competitive anyways?... If the average American now started buying gold shares for their retirement funds...I think we would have a major reversal overnight.. I think as more and more citixens with their own safety nets getting ripped apart get fed up with all these bail outs and where some short sellers who don't see the emperor's clothes have walked away with billions and the people who have led the countries into financial chaos are still ruling..and the investment community who has made billions and who has helped create these for want of a better word "pyramids" and are also leading the show for the next "pyramid"..gee...a real sign of confidence... whether it is gold,silver,oil,zinc..they are limited...and can't be produced out of thin air.. That Economist article to me just means that whoever wrote it is accepting ad infinitum that the "buck stops nowhere..and it is just musical chairs all over again"...even though minivans are getting more and more expensive.. :>