Forum Archive Index - February 2003

["gooner" <nickk@quicksilver.net.nz>]

Hi Snoopy

I had some success - you read it!

Deflation is a factor; depreciation of $US is another; scary finance markets
another.  I remember when the Nikkei was 40,000 and now it struggles to get
above 8,000.  What caused the collapse of the Japanese economy (from which
it has yet to recover)?  Basically the same fundamental problems underlying
good 'ole US of A at the moment.
>
> But at last I think I understand what you gold guys are on about.
>
> Demand has collapsed in the US (apparently), and you think we are headed
for a period of deflation.  The US Fed is trying its darndest to see that
that won't happen by making really easy credit available.

This has resulted in plunging interest rates, and a whole lot of nwet savers
trying to find this money a new home.
>
 But you don't think this is going to work, and that the US people are going
to look around and look for things that hold their value, like gold.
>
> So here is my question to you gold guys. Why do you think Mr and Mrs Joe
Public is going to buy gold?

Snoopy, it has ALWAYS been viewed as currency and has ALWAYS been viewed as
safe haven during volatile times because of the first factor.  Don't ask me
why.  I wasn't around in the days BC.
Pre 1913 it was the most precious thing around.  Then the US Government
decided the Fed Reserve would be the thing to save the world post WW1, thus:

"Let's just print money and give it to the rest of the world".

Giving money away has never helped anyone or anything.  It doesn't help John
Doe collecting the dole and didn't help the world.  Has the billions of $$$
shoved into South America helped them?  How about Africa??  What about
Afghanistan???  Gold has been suppressed to please corrupt politicians and
also those who own the Fed.  Now is time for 'Mr Market' (to steal a phrase)
to dictate.  And I think it will.

> Why not stash away a few drums of raw crude oil instead?

Oh come on Snoopy.  You are being silly now!

Why not diamonds?   They are rare too and much easier to cart around than
gold.

Yes true, but you might be asking the wrong forum that question.  I can't
answer for the market.  Ask the Chinese.  The don't like Diamonds but love
Gold.

Why not buy a herd of prime cattle?

I'm vegetarian.

Why not buy property?

People have.  Another safe haven.  Property is static - it can't produce
itself to appease the demand.  That is one reason why property investment in
NZ has done so well recently.

Why would anyone try to protect their net worth by buying gold?

Why does a toddler suck its left thumb (mine does anyway) when upset?
>
> SNOOPY
>
>
>
>
>
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> but that still only makes me wrong once."
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