Re: Arabs converting to the Euro?

gold is high relative to the dollar, but it should go higher as the
dollar
erodes a few more tens of percent in value. conservatively assuming
a 10% inflation rate of the dollar per year for the next 3 years, gold
will hit $700 per ounce. if the dollar crashes gold can go up to
$2000 per ounce. the key to buying gold is to buy with very little
premium above the melting price, so that you only lose a maximum
of 5-10 percent in real value upon selling the gold (but this could
still be far more profitable than storing money in dollars and maybe
losing 5-8 times that amount due to inflation eroding the value of
the savings). one company called tulving, at www.tulving.com, is
reputable and they sell krugerrands at only 1.5% above the melting
or bullion value. probably the lowest premium you'll find, more or
less.

gold can be a pain in the *** to sell off and liquify. you also pay
capital gains taxes if the dollar value of gold rises above what you
paid for it. There is no adjustment to inflation with the capital
gains tax. So you can pay tax if the dollar value per ounce rises,
even if the real value, adjusted to inflation, of your gold has
declined.
The tax system likes to skim off the top and even punish people
for investing their $$$. beware.



I think I understand.
I thought gold was at an all time high right now? As for Gold, what
should I do, go on ebay and buy some Krugerrands?

.