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(The following page was originally posted to the Internet in 1999. Unlike so much written about business and finance that year, this page needs no revision.)
Reality check"Gold will remain an important monetary reserve asset"Joint statement of 15 European Central Banks - September 26, 1999
"Demand now exceeds new mine supply and re-cycled gold by 500-600 tonnes annually."
"The whole show runs on very cheap oil, a very strong dollar, and very low interest rates. The chickens appear to be coming home to roost on all three scores. The era of an economy fueled by
trader-funded Internet pipe dreams may be closer to the end than most people realize."
BackgroundIn 1994, I organized and sponsored the first conference on the subject of commercial uses of the World Wide Web. Marc Andreessen was the keynote speaker. At the time, the idea that the Internet could be a commercial medium was doubted by most "experts" including most "multimedia" gurus and software company CEOs. At the end of 1998, I sold off the last bit of my Internet holdings with the exception of a small web hosting company (it actually makes money) and focused all my financial attention on commodities and the futures markets. Time will tell if I made the right decision. Meanwhile, I offer this web site to friends, clients, and colleagues who may lack the luxury of time I've had to switch gears and prepare for the new economy. People who were not around in the 1970s especially need to read this material as you've never experienced anything like the conditions we may well be heading into in the not so distant future. - Ken McCarthy
Resources for your re-educationWhere there is smoke, there is very often fire, or, at the very least, the potential for fire. Don't think the world can't change in a flash. What we've seen in the last couple of years is an irrational inflation of the value of stock prices - paper - with an accompanying irrational depression of commodity prices - real stuff. All bubbles burst. Note what rises as the stock market weakens. One important indicator to watch now is the price of gold.
And, as usual, the news department of Yahoo has done a much better job collecting stories on this breaking news than the major media. Here's their gold news page.
More to come© Amacord - 1999, 2002. All Rights Reserved. |