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Show 10F The Salt Lake Tribune 'k Sunday, July IS, 1984 Cold a Highly Liquid, Volatile Investment Haven Then, just as two-yea- r low last week, investors sion. is sought as a highly liquid haven for funds in times of political and economic unrest because it is recognized and accepted around the world and traded around the clock. In addition, gold is used in electronics and dentistry and is in demand or jewelry. Q. What causes gold prices to rise and fall? A. In addition to fundamental factors of supply and demand, gold prices are strongly influenced by inflation, interest rates, the value of the dollar and international events. In the steep price runup that precious metal, apparently lured by the glitter of what was perbargain-baseme- gold? A. Gold once more came to the rescue of the ceived as Q. With prices subject to such wild gyrations, what attracts investors to an ounce in early 1983 and dipped as low as $332.30 on Monday. Here are some questions and answers about gold: - gold fell to a peaked in early 1980, gold soared as inflation roared at a double-dig- it pace in the United States, Soviet troops moved into Afgharistan, and Iranians held U.S. citizens hostage in Tehran. In June 1982, when gold slumped, inflation was unwinding as the U.S. economy was mired In reces- in June 1982, rebounded above $500 By Steven P. Rosenfeld Associated Press Writer NEW YORK Gold, which flirted with MOO an ounce in June, struggled in early July to stay above 300. nt prices for bullion. Those sudden shifts demonstrated anew golds reputation as a volatile investment Consider these figures: Gold bullion, which reached an all-tihigh of $875 an ounce during trading on Jaa 21, 1980, fell below 300 an ounce well-deserv- Q. What caused the recent retreat in gold prices? Analysts link golds slide directg climb by the dollar, which in turn was attributed in large part to a combination of high interest rates and moderation in inflation in the United States. Gold, like other commodities, pays no interest to its holders and is not only a less attractive investment, but also is more expensive to buy on credit when interest rates rise. Q. Is a drop in gold prices good for the economy? A. Some analysts watch bullion A. ly to a record-shatterin- prices as an indicator of inflationary expectations. When gold prices fail, they believe, the outlook is brighter for holding down inflation. But falling bullion prices can cause problems for heavily indebted nations that have pledged gold reserves as collateral for loans. In addition, when the dollar is strong, as it is now, gold may be less expensive to buy with dollars but may be little changed in terms of other, less stable currencies. Q. What will it take to lift gold out of the doldrums? A. Inflation, says Leslie Deak, executive vice president at Deak-Perera New York investment firm. a, Jeffrey Nichols, president of American Precious Metals Advisors Inc., an investment f.rm in White Plains, N.Y., adds, "If gold Is to move into a sustained long-teruptrend its going to take a worsening of inflation. . . That hasnt occurred so far. The More You Deposit, The More You Earn! Because every computer needs a printer, this month well give you one free. At CompuShop, we know the first equipment most people add to their computer system is a printer. Thats why were helping you get off to the right start from the beginning. 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