X-Message-Number: 14096 From: "Phillip Labry" <> References: <> Subject: Gold vs. diamonds Date: Fri, 14 Jul 2000 08:41:11 -0400 > > I would rather buy gold and hide it somewhere in the states. The value > > will increase tax free. >> > > What about diamonds? > There is a political will to maintain the gem value, this is not > the case for gold. In real term, gold price has fallen continuously > in the past half century (outside some short "spikes"). > The best choice could be a mix, for example diamond + real estate > + technology shares administered by a cryonics organisation... Diamond prices are set by the diamond cartel. Gold prices are more of a free market commodity. If diamonds were to move to a free market system their prices would fall dramatically. I collect coins and know a fair amount about gold and the platinum group metals(PGM). While it is true that for a period gold has had a downward trend, it is not that significant. Gold is still a great way to retain the value of your assets. For example a one ounce piece of gold would buy a good man's suit at the turn of the 20th century. This is still true today. In other words it retains its value in relation to other tangible commodities. I personally prefer platinum. Platinum is currently twice as expensive as gold but it is 25 times more rare. I believe that platinum is terribly undervalued due to its rarity and its use in manufacturing*. Platinum has often been considered a hedge within a hedge because of this. Currently platinum is used at some point in the manufacturing process of one quarter of all products. It is used in catalytic converters and is used heavily in fuel cell technology. The fact that it is a critical component of fuel cell technology leads me to believe that platinum and palladium (another PGM) will increase dramatically in price over the next few decades. Palladium has already started to exhibit this upward trend and platinum has been rising steadily for the last two years(from around 370 to 560 per ounce today). There is also a numismatic value to coins. If you were to buy proof or to a lesser degree mint gold eagles and keep them preserved for a hundred years it is likely that their value will be double the melt value. I strongly recommend keeping platinum and gold in your portfolio. Phillip *Gold is also used in manufacturing of electronics but gold is not so rare that manufacturing demands make as much of an impact on its value as they do for platinum. Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=14096