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

To: Oak Tree who wrote (22958)	11/14/1998 2:53:00 PM
From: denekin	Read Replies (1) \| Respond to of 116790

Paul, as I understand it, gold goes up when the public feels it can't rely on its government and financial institutions. A Y2K catastrophe on top of shakey banks, and a non compos mentis government will prompt people to turn to gold and silver as a security and as a substitute for dysfunctional or non-existant cash. And while technically computer companies should make a lot of money off of growing y2k problems, I suspect there might be interesting hysterical responses if the problems are really bad and long lasting. After all, computers and all technology related to computers are obviously the work of Satan...

To: Oak Tree who wrote (22958)	11/14/1998 10:50:00 PM
From: long-gone	Respond to of 116790

Paul, My take on the Y2k problems and the gold demand is the release of far more dollars to the banks as the existing deposits are drawn down. As these "extra" dollars begin to physically circulate vs the electronic circulation we now see, most believe we will see a far greater inflation. Under the fractional deposit system we have, no where all the $ that exist in credit actually exist. Very few people can hold on to cash as well as money held in a checking or savings account. this may lead to a far greater spending, and most believe this spending will be for the basics of live vs the $300 running shoes and fancy cars. this will lead to shortages(and higher prices) for the basic of live and reduced demand(and deflation) for the "extras" of life. This desire for serviceable goods has all ready been seen(to a small degree) in the fashions of this year. Women are wearing longer skirts and boots. rh