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

To: scotty who wrote (22697)	11/7/1998 3:53:00 AM
From: Alex	Respond to of 116785

Don't invest in gold on a 'funny feeling' <Picture> Dear Harry: I have a funny feeling the price of gold will double by the year 2000. Though the price has been going down pretty much in a straight line since March, I think it will hit $400 before the end of the year and $800 next year. What will it take to make it go that high? What can I do to make it happen? What Harry says: For centuries, gold has been used as a measure of real value. Ever since gold prices were unfrozen in the U.S., its price has been seen as a measure of inflation. It is one of the things that the Federal Reserve looks at to determine if the economy is moving toward higher prices. So far this year the price has moved downward from a high of about $300 an ounce to a low of near $275. To make the price go up, we'll need stronger economies in at least one of the major nations and a permeating fear of further inflation to come. Gold did hit more than twice today's price about 20 years ago as a result of inflation concerns. What can you do to make it happen? You can encourage everyone you know to live way beyond his means and to buy gold in order to increase inflationary pressures on the economy and on gold. I certainly do not recommend buying anything on "a funny feeling." There are some reputable analysts, however, who recommend that a portion of your investment portfolio be put into companies that produce gold and have productions costs that are well under today's price. Gold bullion or so-called bullion coins, in my view, are a type of last-resort reserve. If all hell breaks loose from terrorism, war or severe political turmoil, a gold coin will "open doors." This presents a separate type of risk: the coins must be accessible, so safe deposit boxes are out. Incidentally, the feel of a one-ounce gold coin is unique. I don't know why. phillynews.com