Dear Khurram,

If the value of something is dictated by the market then
how can it be objective.. its dictated upon by outside forces.

I see what you are getting at. You are resurrecting that old canard about "intrinsic" value. We hashed through whether gold had intrinsic value many many months ago. I think on the DGC Chat list, but who can say now?

I won't get into that discussion again.

Each have their own interests when deciding to buy or
sell this entity.

Of course they do. Self interest is what makes the market work.

"Destroyers seize gold and leave to its owner a counterfeit
pile of paper. This kills all objective standards and delivers
men into the arbitrary power of an arbitrary setter of values.
Gold was an objective value, an equivalent of wealth produced.
Paper is a mortgage on wealth that does not exist, backed by a
gun aimed at those who are expected to produce it." Ayn Rand.

That's what I mean when I say that gold is an objective
value especially as compared to the arbitrary value
of Federal Reserve Notes.

Any good MBA program will usually teach you that past
performance alone is usually a poor indication of future
potential.

Ah. So, should I gather that you are now sniping at my MBA? Or the program that granted it? Do we really have to go ad hominem?

Having been through a very highly regarded MBA program,
I can assure you that they don't teach any such thing.
Rather, what you are citing is the text from some
disclaimer that one might find in a prospectus or
business plan risk analysis.  It is just boiler plate
stuff.

Actually, in fact, past performance and present performance
are always used as a gauge for future value.  We have,
as Patrick Henry so eloquently noted, only one lamp
by which to guide our feet, and that lamp is experience.

The whole idea behind pro form analysis, net present
value analysis, future value analysis, is that the
past performance of a company can be extended into the
future to give some idea of what it will produce.  Yes,
the analysis is fraught with risk.  Competent analysts
can identify many of these risks.  One can even set an
error bar around the rate of return calculation.

The market has a value for everything..

Yes, and there are marketers who are able to sell nothing.


The selling and leasing of gold by central banks is not
a policy matter?

Who knows? Are you saying that policy matters are not a part of the market?

Thanks for the grammar lesson

To be sure, "one is glad to be of service."


woops.. I probably meant Ounce instead of gram...

Okay then! <grin>


Yes, you can certainly get me to keep my tenth ounce
of gold if all you are ready to offer me today is $30.
A couple of years ago, I would have parted with one
of the tenth ounce coins I had for that price, but
those days are over.

Regards,

Jim
 http://www.ezez.com/


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