Forum Archive Index - July 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

Thank you Rod!

 

Yes, Geoff can deal with the " coming disaster " in three main ways:

 

In all cases sell his land now, then do one or more of the following:

 

1. Save the money and once farm prices are rock bottom, then buy back.

 

2. Put at least say half of the proceeds into gold. Once the price of farm land hits rock bottom, either keep the gold or sell it at the then high price and buy back some land at very low prices.

 

3. Do nothing and just plainly save in whatever currency or currencies he thinks, is best. 

 

4. Reinvest part in the few ventures which would survive, eg. he could become an undertaker or own such an establishment!

 

 

         Comment: There can be variants on these above mentioned themes but as the thirties proved, land prices went rock bottom.

 

A lot of people have held gold shares for quite some time and would like to " help things along " by suggesting that a disaster is on the way! I take it that Geoff is not one of those!

 

It is good for the gold business as well to preach doom and gloom: just visit some of their web sites! 

 

Many farmers lease out their land and concentrate on other business, live overseas or take a trip overseas.

 

Nothing new there! I suppose, Geoff has a different lifestyle now he has leased out his farm!

 

Gold is not that rare anymore; it has changed from a precious to a semi-precious status. Oil is the currency.

 

If the gold price rose to say $US 500 or more an ounce, then, overnight, thousands of dormant mines will open up.

 

All available gold trinkets would be melted down as well as was done in 1980.

 

Sure, there are problems everywhere and one could see a small price lift in gold if the situation in South America does not improve.

 

It is amazing how quickly the IMF or any other group of nations deal with such problems! 

 

Competitive devaluations can present problems at some stage though. If zero interests prevailed in the OECD countries, then there is some room for a rise in the gold price. When will that be?

 

At present, Japan has near zero rates but the price of gold has not really moved as the Japanese are into US securities: A strong US dollar + interest returns!  What will happen to the Euro in the future? 

 

Gerry