[e-gold-list] Re: gold price downturn and investment vehicles
On Wednesday, December 3, 2003, at 11:12 PM, Sidd wrote: Here's an interesting observation: ... Thus, I have been MUCH better off keeping my money in a NZ bank at an interest rate of 6.5% than I would have been if I had kept it in gold. Interesting. You mentioned USD/AU and USD/NZD, but do you have a bottom line figure on NZD/AU? I mean, how much has the price of gold in NZD dropped over the last two years? You Americans must be really pissed at how your currency is being destroyed! Two things happening in the US: 1. Falling dollar 2. Rampant protectionism, i.e. punitive tariffs on imports Both deliberately designed to prop up American businesses who can't compete on the world scene but have plenty of lobbying power in Washington. We Americans will be paying a lot more for steel, textiles, catfish, computer chips -- you name it. If we buy from American companies we pay high local prices. If we buy from Europe, China, Vietnam, South Korea, etc. we pay high tariffs and high foreign exchange. Bush hopes to smell like a rose by November, with low unemployment figures, higher American corporate profits, and endorsements from labor unions. Everything will cost more, but shoppers grumbling about the price of cars and fish sticks, or invisibly paying $100 more for a computer than they otherwise would have, are not going to trace that back to Bush Co. in numbers that matter. Family funds will just sort of drain down a bit for no reason, and everyone will vaguely wonder why their take home pay (a disgusting term meaning the 40% of their earnings they're allowed to keep) doesn't seem to go as far as it used to. But no Sidd, I don't think many Americans will be pissed about it because they don't have much of a clue in the first place. Those who have a clue might take action like buying gold or NZD, and maybe this can generate enough price action to get clueless Americans to jump on that bandwagon -- though most of them will be too late. The path of least resistance for most of them is still stock and bond mutual funds. Gold and currency investment options are more exotic and harder to come by for average investors, and also much less publicized and even deliberately downplayed by financial advisors, CNBC, etc. A friend of mine who's been in the hedge fund industry for quite a while has started a Forex currency fund and I think he's right on the money so to speak. The other day I was talking with him about gold and we got to thinking that he should include gold in his fund as just another currency. There may come a day when ALL national fiat currencies are dropping relative to gold. Any currency fund which merely chases the relative squiggles between Euro, USD, NZD, etc. will be chasing those squiggles straight down the tubes in terms of actual purchasing power. So I think AU ought to be in his fund, though right now the parent trading system under which his fund is organized does not accommodate such a barbaric relic. But my friend said he might call them up and suggest that they include AU in their system somehow. Or maybe he could find a way to include AU on the side, as an adjunct to the normal currency trading in the parent trading system, though it would complicate the accounting quite a bit. -- Patrick --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
[e-gold-list] Re: gold price downturn and investment vehicles
At 5:12 PM +1300 12/4/03, Sidd wrote: Here's an interesting observation: ... You Americans must be really pissed at how your currency is being destroyed! So far, it doesn't seem to be much of an issue. Most folks have probably forgotten the high inflation days of the '70s by now, so it's a perfect time to have lots of inflation, especially after media stories earlier this year warning of DEflation (during a war, yeah right!). Even newspapers like the Wall Street Journal (which is supposedly filled with people who know economics!) ran these panicky there might be deflation stories. IMO, how they ever even got to be news might be an interesting story someday. I expect http://cryptome.org/ John Young to cover it before the professional media when that happens. Go buy his CD, John is a hero of the information-age. JMR --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
[e-gold-list] Re: gold price downturn and investment vehicles
Hello Patrick, Patrick Chkoreff wrote: Interesting. You mentioned USD/AU and USD/NZD, but do you have a bottom line figure on NZD/AU? I mean, how much has the price of gold in NZD dropped over the last two years? Actually, from the data I have, in the same time period I quoted before, it appears the gold rose by just over 2% in terms of NZD... slightly better than the inflation rate of about 1.5% I think the charts you want are at http://gold-price.net Regards, Sidd. --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
[e-gold-list] Re: gold price downturn and investment vehicles
On Thursday, December 4, 2003, at 03:22 PM, Sidd wrote: Interesting. You mentioned USD/AU and USD/NZD, but do you have a bottom line figure on NZD/AU? I mean, how much has the price of gold in NZD dropped over the last two years? Actually, from the data I have, in the same time period I quoted before, it appears the gold rose by just over 2% in terms of NZD... slightly better than the inflation rate of about 1.5% But Sidd also said this yesterday: Thus, I have been MUCH better off keeping my money in a NZ bank at an interest rate of 6.5% than I would have been if I had kept it in gold. OK, so I suppose the net advantage you gained by holding NZD rather than gold over that period was about 4.5% (the bank interest rate of 6.5% minus the gold appreciation of 2%). Your net advantage of 4.5% in holding NZD was not due to any relative strength of NZD over gold, but was due entirely to the fact that you were lending your money out and collecting interest on it. I admit there aren't many low-risk opportunities to lend gold -- yet. But I suspect one day we'll see high quality bonds denominated in gold, perhaps paying 4.5% or more. :-) I think the charts you want are at http://gold-price.net Great site, thanks for the reminder! They don't show NZD yet though. -- Patrick --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
[e-gold-list] Re: gold price downturn and investment vehicles
Here's an interesting observation: In the last 2 years, most people have been excited about the rise in the gold price. On this day in 2001 the gold price was $275/ounce http://kitco.com/scripts/hist_charts/daily_graphs.cgi Today the gold price is $403/ounce. http://kitco.com/charts/livegold.html This shows an increase of 46.5% over the 2001 price. To put this into perspective though, consider the devastation of the USD. My interest is in New Zealand, where I reside for much of the time. The USD/NZD exchange rate on this day 2001 was 2.41663 http://www.oanda.com/convert/classic Today the USD/NZD exchange rate is 1.54696 This shows an increase of 56% over the 2001 price. Thus, I have been MUCH better off keeping my money in a NZ bank at an interest rate of 6.5% than I would have been if I had kept it in gold. You Americans must be really pissed at how your currency is being destroyed! Sidd. --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
