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

To: Bill Murphy who wrote (26428)	1/18/1999 7:10:00 PM
From: Hawkmoon	Read Replies (2) \| Respond to of 117321

Bill, Like I said, I understand your perspective on gold. However, I worry more about people's jobs and the impact a quick upsurge in the price of gold will have on economic confidence that we already know is very shaky. It took how many years for gold to reach these prices. How much time are you willing to permit for gold to gain that $100 dollar increase?? And do you think the CB's would just stand by and let gold gain $100, or 25% within the next 6-12 months?? Expect a fight from them. What is really scandalous in my eyes is how so many people think a gold backed currency is all we require, especially given its history of commodity price inflation during various gold rushes and the spanish conquest of america. Gold never disappears and is non-perishable. And what would gold currently have to be priced at for it to fully back ALL of the currency currently in circulation?? $35/ounce certainly wouldn't be sufficient. What would be the economic impact on the electronics industry that uses large quantities of gold?? Bill, this is not a "blame game". We are talking about people's lives and the consequences of SHARP and QUICK alterations in the price of goods. The gold bugs like to blame the Fed and other CBs... but then again who is placing, and encouraging other to place, a pre-concieved value on a particular shiny metal. Why not place the same value on oil?? At least we know that we're going to run out of oil one of these days. Why not tulips?? They're pretty?? Why not peg Fiat dollars to the price of Amazon.com?? This is where I find my basic conflict with gold bugs. I just don't see where the value in holding gold is. However, like any money losing internet stock like AMZN, I guess I can free ride on the delusions of others. But the question is... do we substitute one mania for another?? Certainly no offense is meant Bill. I'm just not eager to be responsible for creating another LTCM scenario, regardless of who is to blame for permitting it to happen in the first place. Regards, Ron