*gold!!*gold!!*gold!!*gold!!*

Hello Hot Copperites,

I've been quiet since my last posts. Seems I unfortunately upset a few people. Guess we all know the truth hurts.

If ever gold had a chance to go through the roof it was last night. What happened? Gold staged a feeble rally and then got sold off. It's now at $379.

Everyone bullish here about gold keeps talking about inflation and the 70s. What they fail to understand was the 70s inflation was last century. The world was a very different place then.

Now large financial positions can be altered right across the world with a simple push of a button. If you believe the US dollar is going to weaken, then with the simple press of a button you can take a position in a currency that you believe will strengthen at the US dollar's expense. You don't need gold.

We are in the information and computer age. That has finally relegated gold as a monetary metal to the annals of history. Even Warren Buffet took a US$26 billion currency position against the US dollar. He didn't try and put billions of dollars into gold.

Why lumber yourself with huge quantities of physical gold that has to be stored somewhere and of course incurs insurance costs and pays no interest?

What noone seems to understand is that the US dollar can fall against other currencies and the US dollar price of gold can also go for a fall. People are blinded by the past. They assume incorrectly that if the US dollar falls then in US dollar terms gold will rise. That need no longer be the case.

Gold is nice to look at, nice to hold and nice as jewellery. That is basically it.

Gold is no longer a currency. Try using your credit card in a supermarket using the deposit of gold you have locked away in your bank? Try making a purchase with even an ounce of gold?

After this market cycle is through and gold fails to perform irrespective of the price oil goes to, irrespective of the US dollar, even the most ardent gold bull will come to agree with me.

Gold has no more intrinsic value as a monetary metal than diamonds, copper, rubies, brass, emeralds or an ostrich feather.