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

To: skelly who wrote (4843)	12/28/1997 3:21:00 PM
From: Mark Bartlett	Read Replies (1) \| Respond to of 116753

Skelly, <<A word of caution : My friend was also a great believer in BRE-X.>> Perhaps he was a great believer in Bre-X .... but he is absolutely correct, if history is any guide at all, with respect to gold and deflation. MB

To: skelly who wrote (4843)	1/13/1998 12:55:00 AM
From: Ronald P. Margraf Sr.	Read Replies (1) \| Respond to of 116753

Hi Skelly, Remember, if no one has any money to buy the goods then they are worth nothing. When deflation finially hits, folks will be concentrating on paying debt, not purchasing. You won't be able to give the stuff away and that includes real estate. People can't borrow so there are no customers. Folks with cash will be the pawn brokers and they will want it for 25-50cents on the dollar or they won't buy. I've already gone through this in the early 80s. Give you an example. When the gas crisis came in the 70s, folks that owned airplane couldn't fly them because they couldn't get gas. So they sold their planes. They where giving them away. You could pick up a plane for 2500$. Real estate is the same way. The bank forecloses. The problem is that there isn't anyone that has the money to buy them. The bank sits on them and that is not good so the banks start to give them away just to get their money back. Remember the money they lent out isn't theirs. It is the depositors. They have to balance their sheets. You know the rest with the bank bailouts.;-)))) Ron