APOLOGY is due....GOLD is risky business and is not for everyone. I just feel it's been talked down so much that alot of people will get rich if they buy when the price is low. Sooner or later it's got to break to the upside.

greenspun.com : LUSENET : TB2K spinoff uncensored : One Thread

I'll I can say is I'm sorry for recommending GOLD as an investment.

I became overwelmed by the fact that everyone is so negitive on GOLD. This has really prompted myself to look at gold even more seriously because even the coin dealers talk gold down and they sell it. I remember when alot of people would think gold was a good thing and the price went down.

So I have to ask myself, something is really ringing a bell and the smart thing to do is to go againest the crowd since gold has been so negitive for so long.

I don't know about you, but when my broker told me to buy a stock if I had of shorted it I would have made fortunes.

I will keep buying when we have a major price drops, and hang on to my current positions. Today was the day if it had of dropped to my buy price I would have been in glory.

Something is about to happen. When a market has been so negitive so long and dropping for 20 years I'm a buyer.

Good luck to everyone.

-- GOLD LOSER (gl@the.club), April 27, 2000

Answers

Hello GL,

I agree with you and when the price is near our below the production costs of a commodity that is in greater demand than supplu and the price continues to go down I will continue to buy on the down side. The fact is in the eyes of many gold is only a commodity. In the eyes of a few, Alan Greenspan included, gold is the ultimate form of money in a crisis. My personal opinion of the markets and the economy are that the laws of economics have not be repealed and we are not in a new era of prosperity. We have and are in the midst of a debt fueled speculative orgy . When the game is finished and the cycle is completed we will once again have to pay for the investments that were improperly made. Which is currently being done in Japan, Russia, Brazil, Thailand, Indonesia. The reason that the US has managed to stay out of the entire mess is that the US dollar is the reserve currencey of the world. Meaning that foreign central banks hold dollars in reserve and print and equal amount of their own currency for every dollar they receive. Because if they were to put the dollar back into the international market we would have inflation. Rather they hold this ever growing supply of money in US treasuries or they invest it into the US stock market.

Now the the level of inflation is officially stated to be 3.7%. And I believe the real inflation number to be considerably higher. Greenspan will be forced to raise interest rates by at least 50 basis point in May and possibly 75 basis in June. Now that this is an election year if the first 50 does not cool thing he will raise to 75 in June as it will be his last chance to do so without hurting Al Gore's chances in November.

If there are any addition interest rate hikes after June. Watch out. I would then reccommend buying more gold as it would only be a matter of time before the levels of inflation creep back to the levels seen in the late 70's and early 80's.

Also remember that the current account deficit is currently approaching 400 billion annually. Now I know this will not be able to continue for much longer, and since we are experience productivity increases in leaps and bounds, why the hell do we have to import so much stuff from overseas if our productivity levels are increasing soooo much.

The answer is that America does not produce anything any more. We US , our productivity growth in transporting and distributing products that other people produce. We use computer inventory systems and scanner to keep track, order and ship goods that are produced overseas. So this is why we have all these claims of high productivity gains but real wages don't rise because the products were produced overseas and were paid for by increasing Americas trade deficit.

Now wait you may say the US gdp increase by 7.3 % in the last quarter of 1999. Well if any one remembers we had 1000's of major corporations stockpiling goods in anticipation of y2k

To cut this message short. I think gold will make a move to the upside in the future. I don't know when. But with its price equal to or less than its production cost it is hard to imagine its price going any lower. And if it does, I will continue to add to my rainy day fund as I like to call it. I like to think of my gold as my dotgold fund. Same as if you bought a internet stock while it was just getting started. In the future it may soar to unbelivable highs.Or then again it can crash like Drkoop.com. But in the end I will still have the gold. And like someone mentioned here a few days ago. I can be the only one on my block with a full set of golden tableware. Goldenware if you may.

GL. If you overextended yourseld buying gold. I would suggest that you bring yourself back down to a level you can live with. Don't risk your future betting that gold will set you free. Otherwise you will become the same as all those daytraders that I am sure you don't want to associated with.that faced their music on April 14.

keep yer head about ya lad and do what feels right fer you and yer own.

Regards,

Oldergolder

-- oldergolder loser (oldergolderloser@gold.com), April 28, 2000.


Gl,

I apologize to you for poking at you all the time. Can you tell me why you had to buy now in the first place?

I asked this on another thread "Where is best place to buy gold"

I just want to know, I promise no pokes. :-)

----me

-- consumer (shh@aol.com), April 28, 2000.


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