OT - Oil price climbing steadily today (along with gold)

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Check out the price of oil and gold - and see the similarities in the graphs. They both seem to be marching to the same beat. Interesting.

http://www.usatoday.com/money/charts.htm#SP500_GOLD

-- jonny (jonnyb@good.com), February 04, 2000

Answers

I owned gold and silver from the early 60's until 1980 when I sold 95% of my holdings. Since that time, gold has been a long term loser. The price will go up and down, as will all commodities. Know what you're doing before you make a decision about any investment.

Average Annual Price of Gold (U.S. Dollars - Actual Terms) Year Avg/oz. Low High 1998 294.09 273.40 313.15 1997 331.29 293.00 367.80 1996 387.87 367.40 416.25 1995 384.05 372.45 395.55 1994 384.15 369.65 397.50 1993 359.82 326.10 406.70 1992 343.95 330.20 359.60 1991 362.26 344.25 403.70 1990 383.59 345.85 421.40 1989 380.79 355.75 417.15 1988 436.77 389.05 485.30 1987 446.07 390.00 502.75 1986 367.94 326.00 442.75 1985 317.27 284.25 340.90 1984 360.36 303.25 406.85 1983 424.12 374.25 511.50 1982 375.80 296.75 488.50 1981 459.75 391.25 599.25 1980 612.74 474.00 850.00 1979 306.67 216.55 524.00 1978 193.24 166.30 243.65 1977 147.72 129.40 168.15 1976 124.82 103.50 140.35 1975 161.03 128.75 186.25

Average U.S. $ prices are based on the London PM fix. Highs and Lows are based on both AM and PM fixes. Source: Gold Fields Mineral Services

-- Jim Cooke (JJCooke@yahoo.com), February 04, 2000.


Jim,

I don't think of gold as an investment, I think of gold as what I need to own if the US $ has problems. We Americans are far too narrow minded. We believe that wars happen, "over there" and that currencies hyperinflate, "over there." The whole world won't necessarily view the US $ as a safe haven forever, just because they have for recent memory.

We are THE superpower, it's true, but we also have the largest trade imbalance ever, and our savings rate as a country is currently NEGATIVE, after being the lowest on earth for many years. If foreigners find some other place to put their assets besides the US, what will that do to the purchasing power of the US $?

I believe that the fact that the US $ can be printed at will means that it will always lose its value over time. The whole gold argument is not an investment argument to me, it's an argument of money. Do I want to store all of my wealth in money that continually loses its value? Or do I want to own what has been money on this earth for thousands of years? Gold is not just another commodity, it has been the predominant store of wealth on this planet for most of man's existence.

-- J (Y2J@home.com), February 04, 2000.

Did I hear that gold closed up $22.00 today?

I guess we won't see Andy for a while. He'll be busy counting his money! <:)=

-- Sysman (y2kboard@yahoo.com), February 04, 2000.


J:

I don't disagree that owning some gold is a good idea - like I said, I only sold 95% of my holdings, not all :). What I'm concerned about is some of the people here who are touting gold as an investment. It hasn't been a good investment in the last twenty years and I don't think it's going to be a good investment in the next twenty years. As to whether or not the US dollar is going to collapse and gold will be the only real store of value, who knows? I know I spent a lot of time in the 60's and 70's waiting for that to happen before I got out of precious metals.

-- Jim Cooke (JJCooke@yahoo.com), February 04, 2000.


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