Bit upset to see turn gold is taking. Just when you think, no, no lower, there it goes. I realize the recent events that have an impact on this, but wonder how something so time tested doesn't seem to be finding a bottom. Could it be it is turning into something altogether without value? Is this just a fluke before eyes open and the trend reverses? Need some opinions!

-- Gia (Laureltree7@hotmail.com), May 14, 1999

Answers

Gold has no real value anymore. Only in the midst of crisis will it skyrocket. My gold-mine stock is still up ytd, even after the darn BOE announced sale.

I think it will be up over the summer.

-- ho deedo (hodeedo1@yahoo.com), May 14, 1999.

Hang onto it. An interesting thing happened yesterday. Silver rose dramatically, and the main reason cited was a shortage available for physical delivery. Most gold and silver trades are pure electronic positions, and the metal never moves. Well, something different is happening with silver. Watch.

-- Doug (douglasjohnson@prodigy.net), May 14, 1999.

Just heard on the news today, CPI last month increase 0.7% -- largest monthly increase in several years. That is > 8.4% annualized. That means by rule of 72, that cash/currency value will decrease by 50% within ~8.5 years. Should give the metals a shot in the arm.

-- A (A@AisA.com), May 14, 1999.

Gold will never have the value it once had. If TSHTF then beans will be worth more than gold. If everythings okay your 'money' will be safer as currency. Better investment, too

-- jp (email@website.com), May 14, 1999.

The little bit I have learned about investing is NEVER sell on the low unless the business/investment is "dying". I do not look for my gold to be a high-performing investment, it is more of an insurance policy - always historically been regarded with value especially if paper money devalues.

It is hard but try to ride out your disappointment with the short term ups and DOWNS. If you read old fashioned investors works they stress to invest with a long time frame in mind. If you sell today you are GUARANTEED to lose $ (remember the % off of spot price you will get from a dealer). Only you know if you can stomach riding this out or if you need to possibly cut your losses now. Personally I have chosen to hang on. I don't understand exactly why the countries are selling the gold but I suspect that this too shall pass.

Good luck with your decision, whichever way you go!

-- Kristi (securx@Succeed.Net), May 14, 1999.

I believe the central banks are manipulating the gold price. Just do a 3 yr chart on any old commodity, and overlay the gold price chart, and it will look nearly flat. As to when and how this price-fixing will end, who knows, but it is clearly in the interest of the central banks to have everyone forget that gold even exists. My concern with getting a lot of gold (or silver) coins is that most folks are too young to remember when money was real, and may not have any idea that these coins have any predictable value. The post from the lady who endured Sarajevo was most telling: toilet paper was much more valuable than gold coins. I like Michael Hyatt's idea of storing trade goods that 1) you will use anyway, 2) have a lot of value per cubic foot, and keep well. How about condoms, .22 shells, coffee, and spices for examples..

-- Tennessean (holladayl@aol.com), May 14, 1999.

Cigarettes and booze

-- (lighton@nobody.home), May 14, 1999.

Let's see. Gold has been a medium of exchange since time immemorial. It has inherent worth because of its scarcity, portability, durability and efficacy in the creation of other products, some useful, others not. To claim that it is no longer useful or has worth is an idiot's message, flying directly in the face of thousands of years of history. I certainly wouldn't stockpile gold to the exclusion of toilet paper and batteries; neither would I ignore its inherent value.

-- Midas (midaswell@not.com), May 14, 1999.

Midas, times change.

An asset is only worth what someone will pay for it. Gold is the same as anything else... Its worth is is determined by demand and supply, not intrinsic value...

-- Jeff Donohue (Jeff_Donohue@hotmail.com), May 14, 1999.

"And the gold of the land is good" Genesis. "And gold will be tossed into the street" Revelation. God created the use of gold in Genesis and said He would destroy it in Revelation, which means that if it is dying then we're in for far more then the help any stockpiling or any survival plan. In the mean time history has shown that gold will hold its value my grandmother saved her family because of a bit of gold in the 1930's. I'd hang on. Diversification is good for investments 1/3 in land or some form there of 1/3 in gold or some form there of 1/3 in cattle or some form there of. I certianly would not put more than 10% into gold or silver but a little bit wouldn't hurt either.

-- justhinkin com (y2kaok@justhinkin.com), May 14, 1999.

I agree that gold (and the other precious metals) will probalby not have the value that some of us put on them, right after TSHTF.

People will have to be educated by having their noses shoved into reality, which may take a few years, before they again appreciate the value of the precious metals.

It is long term. So don't forget also the base metals, such as lead. :)

-- A (A@AisA.com), May 14, 1999.

Dear Carmen,

If you click on New Answers and then search for the word Gold, you will find four other threads on this subject in this forum. Read those and you'll have a better idea.

If the banking intersts try really really hard they might be able to get gold down to $250, though I doubt it. They can always play the "news leak" and "unfounded rumor" story about gold confiscation, but I doubt that too as I think that would backfire on them big time.

-- Ken Seger (kenseger@earthlink.net), May 14, 1999.

Thanks for thoughtful answers.I am going to ride this out no matter what. Did you see what the Dow did today? Think maybe we can expect more of same. Hoping this manipulation is related to people "in the know" making their grab for it. What just doesn't make sense is country like U.K. dumping reserves on the market if they have questions about future value of their currency. Unless for some reason they are desperate to raise funds.

-- Gia (Laureltree7@hotmail.com), May 14, 1999.

Oh guess what? Sleazoid COBOL Dinosaur got a hold of this thread and draped it across Debunking Y2K.I'll be laughing at you too one day...

-- Gia (Laureltree7@hotmail.com), May 15, 1999.

I still have a hard time understanding why a 1 oz. Gold Eagle says $50 on the front of it.

It's true that historically gold has been a traditional store of value, but people's perception about what is "currency" is also important. I think it was in "Money Mischief" by Milton Friedman, where he described a group of island natives who used large rock "coins" as currency. The rocks were of a type not available on their island and had to be quarried from another island and transported in canoes. The coins varied in size, up to several feet across with holes cut in the middle so that a pole could be passed through the middle and it could be carried by two people.

During WWI, the Germans invaded the island and wanted the natives to construct footpaths and roads. When the natives refused, the Germans went around and would paint a large X on a person's "money" to fine him for not complying. The Germans got their paths built.

In the world today, the US Dollar is used as currency all over. It's preferred in many countries over their own. Mostly it's because the US is perceived as having a stronger economy, but US currency is also a good product, so to speak - the way it is made. It's easy to tell if it's authentic, it is difficult to counterfeit, there is a limited supply (limited by the US gov't, of course), and it's accepted almost universally.

In a Y2K meltdown, gold may eventually go up in value, but currency will still be necessary to conduct trade. I think cash will remain an indespensible barter item. A little cash is good, a lot is better!

I'm still considering purchasing a some gold as a hedge, but I'd need a bit more convincing first.

-- Clyde (clydeblalock@hotmail.com), May 15, 1999.

Clyde - The rock coins were made and used on the island of Yap. The interesting things is this. Some of those "coins" are over 400 years old. Guess what? They still have about the same value now as they did then. How many "civilized" currency units have as good a track record as those "savages" currency?

As for, "I'm still considering purchasing a some gold as a hedge, but I'd need a bit more convincing first." The question has to be asked, by the time you are more convinced, will 100,000 other people have been convinced before you? Best of luck to you, and I mean that sincerely.

-- Ken Seger (kenseger@earthlink.net), May 15, 1999.

Ken,

That's exactly my point. People are clueless. I think it will take a while (a couple of years) for them to become convinced.

-- Clyde (clydeblalock@hotmail.com), May 15, 1999.

I dunno about clueless worldwide. The USA yes 9and the UK, much of Europe).

The Indians, Asians generally, Saudi's, Iranians, Iraqi's etc. with their Gold Souks, I think worldwide the demand will be phenomenal if there is a liquidity crunch followed by financial chaos.

-- Andy (2000EOD@prodigy.net), May 16, 1999.

got gold? yeah, I do. wish I didnt, tho. wish I'da listened to bob brinker more. he always laughed at "gold bugs". he was right. thank god, I sold a good portion of it when the price was still up. talkin' 'bout semi numismatic's ,now. my advice? stay away from gold!

-- ed (edrider007@aol.com), May 17, 1999.

Ed,

Bob Brinker may be right now, and perhaps over the last few years, but will he be right in 6 months time?

I don't think so.

Doesn't Brinker pooh-pooh y2k as a bump???

-- Andy (2000EOD@prodigy.net), May 17, 1999.

I've listened to bob for about four years now, and imho, he's the most informed person you could ever listen to as far as the stock market goes. seems he's never wrong about anything. the man is brilliant.

-- ed (edrider007@aol.com), May 17, 1999.

however, while I want to cling to bob's sound advice ,I keep thinking, I'ts worked, the system has worked, and a lotta people have made a lotta money in mutual funds, but I have an OMINOUS premonition that the system can crack, ever so quickly... how long can it go on? Isnt it said that countries dont last more than two hundred years? I feel, in my heart, that we, the usa, will go down. I dont want to believe that, but...

-- ed (edrider007@aol.com), May 18, 1999.