Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.2 9/18/84; site ucla-cs.ARPA
Path: utzoo!decvax!tektronix!hplabs!sdcrdcf!ucla-cs!brett
From: brett@ucla-cs.UUCP
Newsgroups: net.invest
Subject: Re: query on gold
Message-ID: <6784@ucla-cs.ARPA>
Date: Wed, 4-Sep-85 21:13:16 EDT
Article-I.D.: ucla-cs.6784
Posted: Wed Sep  4 21:13:16 1985
Date-Received: Sun, 8-Sep-85 00:41:13 EDT
References: <214@unc.unc.UUCP>
Distribution: na
Organization: UCLA Computer Science Department
Lines: 35
Xref: tektronix net.invest:00798 

> 
> Given the possibility of another recession in future, the idea of
> investing in gold comes to mind.  I have always dealt with stocks et
> al. in the past and know next to nothing about gold as an
> investment.  
> 
> I have the following questions:
> 	1) Is this a good time to buy gold?
> 		(or is any time a good time for that matter?) 

For the short term the answer is no.  Because of uncertainties
in South Africa, there may be some instability in the Rand.
Large debts are due to be renewed on December 31st.  If those
loans were not renewed, economoic chaos would ocurr in
that country.  Since the nation owns 60% of the supply of 
gold, if my facts are correct, one way to back the 
Rand is to back the Rand with gold.

								1
This would have a short term bearish effect on the price of gold.  

1
 This information from the Nightly Business Report 9/4/85.

-- 
Brett Fleisch
University of California Los Angeles
LOCUS Research Group
3804-f Boelter Hall
Los Angeles, CA 90024
Phone: (213) 825-2756, (213) 474-5317 

brett@LOCUS.UCLA.EDU
{...sdcrdcf, ihnp4, trwspp, ucbvax}!ucla-cs!brett
-------------------------------------------------------------------------