Date: Mon, 28 Dec 2009 12:06:22 -0800 (PST) From: Mervyn Lobo <mervynal...@yahoo.ca>
I hope Uncle Mario will not get a heart attack when he reads this one. I need him alive for another little while so that he gets to see $1,650 gold :-) Mario responds: Young Mervyn, One of the fundamental building blocks in finance is known as the "Time value of money". If you were familiar with this concept you would know that it is not only what level the price of an investment or commodity will reach but also when. Both are critical in evaluating whether an investment was worth making relative to other investment opportunities. When you predicted %1,650 for the price of gold you said it could be anytime between March of 2008 when it reached $1,000 per oz. and you made your prediction, and when hell freezes over. The time it takes to actually reach $1,650 will determine whether it was a good investment relative to other investment alternatives that were available at the time. Between March of 2008 when you made your prediction and October of 2009 gold was a lousy investment, and we didn't hear a peep from you about gold. Then your socialist icon, Barack Hussein Obama's policies started to kick in. Whether Obama will be able to continue to debase the currency beyond 2010 when his wings are likely to be drastically clipped in the mid-term elections is an open question. In the meantime, it may behoove you to familiarise yourself with these investment basics. I hope this link helps: http://www.investopedia.com/terms/t/timevalueofmoney.asp
