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

To: Hawkmoon who wrote (28208)	2/14/1999 2:41:00 PM
From: Eashoa' M'sheekha	Read Replies (1) \| Respond to of 116764

Almost 21 Questions Revisited.Questions One Through Eleven. Q. What is money? A. IMO, money is an illusion. It is an idea or concept that people accept as a proxy for an actual good or service. Gold as money is as much an illusion as paper currency backed by the full faith and credit of our government. To deny the credibility of a nation's currency, especially the US dollar, is to question its government and people productive worth. When that occurs, gold may not have much value either. Comment: Yes.An illusion and a proxy.But gold is finite where Fiat is not.Less an illusion , if you will. Faith is in the mind of the faithfull.Credit is another illusion, a promise really,with less substance than either.Like betting or gambling at times.The US dollar is no different than any any other fiat with the exception that it is at this time considered safer than others.Things change, as they always do.To deny this is ignoring history.Gold's value will soar if the currency in which it is denominated is called into question.I don't portend this ,it is just so. " I think the argument could be made that we're seeing bottoming at these levels, minus selling by CBs into the open markets. " 1) .But can you be sure? A: no C: Good answer. 2) Are you calling a bottom? A: no, and neither can you. C: Few can..but we are trying.Seems everytime a bottom was found,some entity came up with a reason for a new one.Much publicised and to the glee and content of all that is Western,or so it seems?I did call the bottom to the day and hour last year,but much further along politics again came into the picture unexpectedly. 3) Can you say for certain any sales were made on " open markets "? A: no,and neither can you C: Would that not present questions in the minds of those interested enough to follow these transactions? Should wee little folk just take for granted that all announced sales are transactions taking place in the Same market that competes with annual production from mines, and then broadcast as reasons for Downward movement in gold prices,hence rapid depreciation in market capitalisation of those miners? 4) Can you determine who bought the CB gold? A: no, but would appreciate any direction to relevant sources. C: I'm sure everyone one here would.Thus far, it has been a one way street,if you wish to consider it that Way.There has been little,if any,accounting for WHO bought the gold.Always just who SOLD IT. 5) Do you follow the Central Bank issues? A: only what I read here and a few other locations. C: You came to the right place.This thread,when not bombarded by American politics,is a good read.<g> 6) What is your knowledge of the Central Bank issues? A: only what has been stated here and a few gold related sites. C: See…it is a good read at times,but read that as R-E-A-D…..it takes time to put it all together. 7) What percentage of investment gold demand in the US affects overall demand? A: : Good question. India seems to the prevalent consumer of gold. C: Yes they are.I believe the answer lies somewhere around 2%,which is why I continue to be puzzled By the much publicised Anti-gold rhetoric in the American press.This 2% total influence is somehow going to upset the world's financial markets and bring America to it's knees?I think not. 8) Does gold offer a hedge against uncertainty? A: Absolutely, if that uncertainty undercuts the entire financial system and especially the primary reserve currency, the US dollar.But preventing rising gold prices would be a focus of CBs trying to prevent that feeling of uncertainty from becoming prevalent. C: Hmmmmmmm. So gold is the dog and not the tail by this statement.I mentioned this some time back With little feedback.Some appear to think few actually monitor or give a rat's bazzoo about the POG. Some think only the older folks keep an eye on it.Some say your FRC thinks its irrelevant. Some say he Still monitors.Interesting indeedy. 9)Would you equate buying gold to buying an insurance policy? A: Only if I was worried about inflation and not deflation. I prefer term life insurance over whole life insurance. I prefer cash over gold, since eventually that gold will need to be converted to cash and I don't have to worry about gold being declared a "strategic metal" and confiscated as occurred in the '30s. C: I assume you are referring to your personal situation in the US of A here.Since you now have more alternatives of what may be considered " strategic ", would gold not be just another one of those options if such calamity were to occur ?Is it just because this is a part of your history , or is there some other significance to this?Would this fear not lend credence to the notion that gold is still money? 10) If you bought gold and never sold it,would that be a waste of money? A: If I bought it anytime in the past 16 years? ABSOLUTELY!!! Gold has lost value relative to most other storehouses of value that have greatly appreciated. C: No doubt about it…in the USA.It has appreciated considerably in countries who's currencies have taken a beating in the last two years or so.But this thread deals with I-N-T-E-R-N-A-T-I-O-N-A-L issues when not burdened by US insularity and had often dispelled the notion that gold does not retain its value during times of monitory devaluation and the like.I guess we have to just accept the fact that you speak from an American perspective only? 11) If you bought something made from gold and passed it on to your children, would that have been considered a waste of money? A: heirloom values are strictly relative and extend to many items that cost far less and sell for far more. Eg: Barbie dolls in mint condition from the '50s. C: By this answer I am convinced you are anti gold and cannot put together two lines of objectivity.But I will continue just for the heck of it on the next post.