Forum Archive Index - February 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi soarer2,

Good to see you've taken up the challenge of giving me the gold bug
>
>
>>People are stacking up on
>>gold because they perceive it to be a 'safe haven' material.  
>> People buying gold today may consider it a bargain at $US360 an 
>>But is it still a bargain at US$450 an ounce?
>>$US550?  Have there ever been any studies on this type of thing?
>>   
>
>www.gold-eagle.com - this site has everything you need ( Yes some of
>the articles are biased towards Gold, but this site has made me
>considerable amounts of money ) If your interested in Gold and the
>REAL state of US equity markets take a look.
>Gold - Long
> 

I've just been to the site are read the article 
"What's making gold glitter?" by Paul L Kasriel

His opinion is the difficulty in getting a decent return on your cash 
in the bank is the reason for the increasing price of gold.  Gold 
is regarded as a sort of wealth preserver.  But I didn't see any 
argument about how high he thinks gold will go.

In any event, that argument doesn't apply in New Zealand.   There are 
plently of places to get a decent return, and in some of those income 
shares I have been talking about for the last year the returns are 
absolutely spectacular by US Standards.  So there is no need for us 
to do what those who have the gold bug in the US are doing.  No need 
at all.

>
>>And the problem for New
>> Zealanders and Australians investing in gold is that we are 
>>'down under dollars' that are outperforming the American 
>>ones.  So  how do we manage the exchange rate risk?
>

I didn't see anything on the site about what to do if your currency 
is appreciating in value and so wiping out all the nominal US dollar 
gains you made in your gold investment.  Where was that again?

SNOOPY



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