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[Clansgian AT wmconnect.com]

> >I know you aren't sure; but if you were not at the point where you are 
> now; would you think some assets in gold is good for medium term stategy, 
> next 
> 2-5 years. 
> 

No.  Whether I'm at the point where I am or not the answer would still be 
'no'.

Gold has very little intrinsic worth, its value is by agreed hallucination.  
It's true that said hallucination is a good one and is universal and persists 
over the years, but none the less, gold is good for dental crowns, musket 
balls, fishing sinkers, drinking cups etc.  But that's about all.

Back in the old Jesus Freak - Kumbaya days there was a Rapture song which 
started:

"Life was filled with guns and war
And all of us got trampled on the floor
I wish wed all been ready
The children died, the days grew cold
A piece of bread could buy a bag of gold
I wish wed all been ready"

What the goldniks don't seem to realize is that while gold will hold seem to 
gain value as the dollar collapses, it only holds its value compared to goods 
....at best!  That is, if $800 buys an ounce of gold or twenty sacks of wheat 
today, when the dollar collapses, that same $800 might not buy even one sack 
of wheat.  But the ounce of gold might buy twenty sacks of wheat still, but 
more likely ten  or five.  BUT if you buy twenty sacks of wheat and the 
dollar 
collapses, you have twenty sacks of wheat.

Gold is better than keeping a bank account or hoarding paper dollars, but it 
will never be as good as the commodities themselves.

A gold strategy is good for 2 to 5 weeks, but not 2 to 5 years.  That is, 
gold would be a good emergency stash to fall back on in case of an emergency, 
but 
it is a lousy long term strategy even as long term as two years.

Gold can backfire.  Last February or so I bought a lot of wheat, the most 
expensive being the soft white wheat for bisucits for which I paid $26 a 
fifty 
weight.  I checked the price two days ago .... $56!   What if I'd bought gold 
instead of wheat?  I'd be behind financially and a lot less secure.

What if the SHTF in earnest??  What are you going to do with that on oz. gold 
coin?  Someone would have to be willing to cash it, trade it, or otherwise 
convert it into a form you can use if you want to buy anything worth less 
than 
the full ounce of gold.  In bad times, good luck with that!

So, to recap, no, I would not put a lot of trust in gold as a good strategy.


James