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 : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (724)	2/15/1998 10:00:00 AM
From: RH	Respond to of 8010

I don't think anyone ever implied that 'all life' would stop because of Y2K or severe deflationary period/depression. Human beings are able to adapt and will create solutions in order to survive. Those that promote silver and gold holdings during this period do so because they are not simply looking to survive any serious threat to the current market/society. It may be possible to preserve your wealth and in fact profit handsomely from dramatic events like a sudden breakdown in the current financial system. If you don't believe that sudden events like this will affect your net worth, look at some of the stories that are emerging from the Asian currency crisis. Property moguls are losing everything, expensive toys are being sold for "pennies on the dollar" (airplanes, luxury cars, boats, properties etc.). I would like to be prudently positioned in the event that we face some dramatic swings or shifts in the markets due to a number of possible crises that loom in the not so distant future. I like the previous poster's comment about evaluating the risk potential--if you believe there is a 50% chance etc... then ensure you are hedged accordingly. On the other hand, if you don't think it could happen, no problem--don't invest in the tangibles. Regards, RH

To: Tommaso who wrote (724)	2/15/1998 10:09:00 AM
From: Tom McIlwain	Respond to of 8010

Tommaso: <<I wonder if you would mind explaining clearly why there should be much of a connection between a dating problem on some computers and the prices of precious metals?>> Billions of dollars are transferred electronically all over the globe on a daily basis. No, make that trillions of dollars. The Y2K problem threaten the possibility of disrupting this to a certain, rather unpredictable degree. I don't think anyone believes that the entire world monetary system will come to a screetching halt, but there could be considerable disruption, localized chaos and most importantly from the point of view of precious metal prices, uncertainty. The point is not that people will all suddenly revert back to using precious metals as daily currency, but that the uncertainty introduced by the Y2K situation will create a greater demand for the old stand-by - precious metals. Sort of the same reasoning behind the notion that things like war or an oil crisis will result in a gold rally. In times of uncertainty, institutions, governments etc. like to accumulate gold and perhaps silver as a security measure. Tom McIlwain P.S. <<The so-called Y2K problem is somewhat like a possible attack by flying saucers.>> Yes, if we were attacked by flying saucers, that would probably cause a gold/silver rally as well! In that sense, you are correct that the two situations are very much alike. <ggg>

To: Tommaso who wrote (724)	2/15/1998 9:42:00 PM
From: TD	Respond to of 8010

Tommaso, you have received two answers before I saw your posting. The two posts were excellent in my view. Technically PM are money and paper is debt but we all do transactions with paper all the time. More to the point you need to decide for yourself how possible a Y2K crisis is? There are two or more threads here on SI, just type in Y2K and you should fine them, read study and decide. Furthermore checkout www.garynorth.com for the most info on the worst case. My precious metals position is based upon the facts I believe and the possibility I give the potential problems ahead. Hope this is sufficient, I think Tom actually did a better job providing an answer for you than I. TD