"MacHamish" <russj41@concentric.net> wrote in message
news:rbfkq01hsk134tiuf1oa08e2p1dlp2scqr@4ax.com...
> On Sun, 28 Nov 2004 19:57:47 -0000, "Nebulous"
> <Nebulous@pigtail.freeserve.co.uk> wrote:
>
> >
> >"MacHamish" <russj41@concentric.net> wrote in message
> >news:173kq01naa5t0ddm0jpu0rn6jh9q2nj19o@4ax.com...
> >> On Sun, 28 Nov 2004 08:58:47 -0000, "Nebulous"
> >> <Nebulous@pigtail.freeserve.co.uk> wrote:
> >>
> >> >
> >> >"Jim Stewart" <stewart@ceet.niu.edu> wrote in message
> >> >news:cob5jo$fcc$1@usenet.cso.niu.edu...
> >> >>
> >> >> "Nebulous" <Nebulous@pigtail.freeserve.co.uk> wrote in message
> >> >> news:41a8e4b3$0$19154$cc9e4d1f@news-text.dial.pipex.com...
> >> >> >
> >> >> > "MacHamish" <russj41@concentric.net> wrote in message
> >> >> > news:u4fhq0ddcl6djfvbqocv5a68fcj2obabs8@4ax.com...
> >> >> > > On Sat, 27 Nov 2004 17:30:36 -0000, "Nebulous"
> >> >> > > <Nebulous@pigtail.freeserve.co.uk> wrote:
> >> >> > > >Actually he should have bought Euro's.
> >> >>
> >> >> The fact that he did not places a shadow on his genusness. Hindsight
is
> >> >> always easy.
> >> >>
> >> >
> >> >It was intended as a joke Jim. If he got out of dollars and into gold
he
> >has
> >> >done very well, and much better than most people, although he has
> >> >contributed in his own small way to the demise of the dollar. I was
> >trying
> >> >to suggest he should instead have done something (invest in Europe)  I
> >felt
> >> >he would find difficult to justify to himself.
> >>
> >> By investing in gold, I covered all the bases.  Gold is the only true
> >"store
> >> of value".  Gold is (solid) money.  There will be a time to divest my
> >> holdings and move to something else.  For now, I'm comfortable with my
> >> positions.
> >
> >Yet for about 20 years from 1980 it would have been an extremely poor
> >investment. It still hasn't done very much in pound sterling terms.
>
> Gold was actually a bit higher than it is today in 1983 ($510) and 1987.
> From a high of $500 in December of 1987, gold began a long slide down to
> $255 in August of 1999.  That's when I started investing in Gold shares.
> Gold closed at $451 on Friday.  I didn't know I was getting it at a
bottom,
> but the chart looked like it didn't have much down-side and plenty of
> up-side potential.  It has worked out that way so far, and I don't think
> it's over.
>
You're not going back far enough it was over $800 in 1980.

> >> >> > > Yes, when it indexed in the 80's vs. the 130's, but even at
that,
> >it
> >> >> > hasn't
> >> >> > > outperformed gold over roughly the same time frame.  I'd much
> >rather
> >> >> > > speculate on gold than the vagaries of an individual currency.
It
> >> >> spreads
> >> >> > > the risk.  It's also easier.
> >> >>
> >> >> We have had three swings in gold in the past 40 years. In allcases,
> >most
> >> >> investors
> >> >> do better in the market.
> >> >> > >
> >> >> > > >Either way each individuals flight from the dollar contributes
to
> >its
> >> >> > > >problems. America has to increase interest rates and tighten
its
> >> >belt.
> >> >> > >
> >> >> At the cost of more jobs and an increase in the homeless.
> >> >>
> >> >
> >> >Yes- as I've just said to MacHamish the free market is very
unforgiving.
> >If
> >> >it had been done a year ago it would not have hurt nearly so many
people
> >as
> >> >it is now likely too. Its either that or continue to watch the dollar
> >slide.
> >>
> >> I'm for watching the dollar slide.  It's a necessary adjustment that
has
> >to
> >> play itself out.  I'm not personally responsible for any of these
> >problems,
> >> but shame on me if I fail to read them correctly and take advantage of
> >> whatever opportunities they provide.
> >>
> >It doesn't usually play itself out until you correct the underlying
imbance.
> >
> >Looking after yourself and yours is about all you can do. It doesn't help
> >your country though, which needs you all in dollars.
>
> It's not like I don't have any dollars.  :-)

Somehow that doesn't surprise me. I don't have many pounds- too many mouths
to feed. Still my time will come, just 8 years left on my mortgage.
>
> BTW, the dollar index has been this low before, three times as recently as
> the early 90's.  I can't find a longer term chart, but I seem to recall
that
> it was considerably lower a few years before that, maybe during the 70's.
>
> MacHamish M