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: PaulM who wrote (15990)	8/16/1998 11:10:00 PM
From: Daytek77	Respond to of 116897

Paul As I stated previously, Gold is definitely inversely related to the equity markets. I am not certain what is meant by conservative investment? The last 20 years have seen inflation stamped out dramatically and this has led to dramatic changes in how this asset class is perceived. The advent of derivatives, increased hedging by gold producers and the increase in Central Banks sales and leasing have all contributed to Gold's current state. I have no doubt that Gold will regain its' lustre at some point. I am not sure how one can make the conservative investment theme make sense. To me conservative indicates an unwillingness to risk capital. Bonds pay guaranteed interest as do t-bills. Utilities are conservative, but Gold is at the mercy of all the factors I mentioned above so the investment must not be viewed from a monetary perspective. Security in times of extreme currency fluctuations ..Yes. What I said before about distress sales in Korea and others was not an indictment of Gold, because it performed as intended. Gold price in Won skyrocketed in value, it was sold because it was the only thing that could be to pay down debts. Therefore it performed its' function but under the extreme of circumstances and at what cost?