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To: Carry_Okie
the value of gold...varies with market demand.

That's irrelevant? The point is what stands behind the so-called dollar. Anything can serve as the backing as long as it has value. Nonetheless, gold is best, by far, for the reasons stated below, among others.

In fact, without the demand for gold as a raw material...it would look even worse as a store of value than it already does.

There is currently 50 years supply of gold above ground (mostly in the form of unused gold bars). Therefore, the demand for gold, is hardly affected by demand for current industrial usage. About 30% of all the gold that has ever been mined, exists in the form of bars sitting in vaults. What other commodity has even a one year supply in existence.

How do you explain this:

Customer: I'd like to buy an ounce of gold. How much will that be?
Merchant: That will be $275
Customer: I'm sorry, did I say an ounce? I meant a ton. How much will that cost me?
Merchant: $275/ounce.

Name another product for which that is true (besides money)

331 posted on 12/09/2001 2:36:22 PM PST by Deuce
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To: Deuce; Nick Danger
A mere ton? How about steel? I defy you to affect the price of steel with the purchase of a mere ton.

Your assertion that if one makes a purcase of a ton of gold it won't affect the spot market price is patently idiotic, or do you remember what happened when the British stopped their selling in the middle of a sale of 35,000 ounces (that's about a ton)? Ashanti does! It caught them short on the options market and pushed them into bankruptcy (much to the delight of the British traders BTW).

There are thousands of products whose demand curve is flatter than gold. Try again.

334 posted on 12/09/2001 3:52:30 PM PST by Carry_Okie
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