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

To: Enigma who wrote (22799)	11/10/1998 11:55:00 AM
From: Zardoz	Read Replies (1) \| Respond to of 116786

"You have it seems fallen into a trap by confusing a reserve asset with a an investment - a common mistake I might add." Not me... If gold is a reserve asset, than so is the special drawing rights, and the other foreign currencies. As a matter of point, preforming assets like US bonds are a better way to hold the currency, since ultimately any GOLD would need to be sold into the market to support your currency in times of need. And since the gold markets is more il-liquid than the US bonds, than the bonds would be the better mitigator of support. I think Morgy_Dog comment: "It also reveals that something might be intrinsically wrong..the governments of the world seem to be focussed on exporting their way into having stable economies rather than relying on themselves." Demonstrates the real problem with Canada, and many others. Their inability to develope a technicalogical base, as opposed to keeping open commodity related business. And thus destined to suffer the boom bust cycles. Macros: "One of the very few legitimate activities for a government is the maintenance of a meaningfully stable currency to facilitate the commerce of its citizens both within and without the borders." I disagree... It's the nature of the government to create a stable economy that allows a substained growth rate, while limiting inflationary trends. Russia hasn't learnt that, but USA has. Honk kong, Malaysia, Singapore, had excess high inflation rates, and suffered when demand changed. Japan has excessively low {negative} inflation rate, and suffers from implosion. If a country needs to lower it's currency to create this enviroment of stable growth, than it better not have any Gold laying around. PS: There is a high correlation between the CAD and POG