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

To: Hawkmoon who wrote (26662)	1/21/1999 4:24:00 PM
From: lorne	Respond to of 116779

Hello Ron, you said or asked >>> What purpose do CB holdings of gold serve?? They take up storage space. They accrue no interest. And the metal competes in the psychological minds of those looking for storehouses of value for their money.<<< I'll go with competes for storehouse of Value. You said >>>So the banks maintain a close hold on gold in order to control its price, both for your interests as gold holders, and as a means of preventing the metal from undercutting confidence in the paper denominated currency they issue.<<< If gold has this much value why fear it, you would think the more they have the more valuable would be their currency. You said, >>>People perceive that paper has value based upon the "full faith and credit" of the gov't issuing it, and based upon that gov'ts ability to service debt.<<< It seems to me that lately a number of countries have defaulted on their debts or are in a lot of trouble in this area, their economies have failed their paper has lost value I think it can happen to any country including the USA. How can the USA ever service its debt maybe if the POG gets to $2000 to 3000 an ounce they may be able to pay some debts with the gold reserves they have or at least I think they have. Enjoy your posts. Lorne