Mackenna's Gold

 

Since times immemorial, man's quest for the yellow metal gold has remained unquenched.  There are innumerable stories, real and fictional built over the search for gold.  One such story, 'Mackenna's Gold', the blockbuster movie of the year 1969, is indelibly etched in the memory of we seniors, since long.  Do you believe that this movie was a box-office failure in the country of its origin US?  Call it the trigger provided by the 'craze for gold,' the movie was a huge success in the Indian Subcontinent! Later, the film continued its super gains in the erstwhile Soviet Union (present Russia was its major part) and other countries of central Asia.

People in America believed that there was a huge treasure of gold hidden in the 'canyon del oro,' located in their south-western parts.  (A 'canyon' (pic above) is a deep valley created by soil erosion from a flowing river). The treasure was believed to be guarded by 'Apaches,' native American tribes.

Colorado (played by Omar Shariff, first man behind), an outlaw from Mexico with his team of more outlaws and tribals, was in the treasure hunt.  On the way he captures Mackenna (played by Gregory Peck, seen in the front above), who knew the route to the location of the treasure. One more team led by Ben Baker, which also was in search for the treasure, forces its way into Colorado's team.  Colorado's team was chased by another team of men on horseback led by Tibbs.  

Tibbs' army kills most of Colorado's men, and finally they too force their way into Colorado's team.  One day the warring factions reach the 'shaking rock,' behind which they find the huge treasure of gold.  The leader of the US-army Tibbs, loads saddle bags on either side of his horse with the gold nuggets (irregular pieces), but gets killed.  

In the commotion that followed, 'shaking rock' falls, triggering a mini-quake resulting in the deep burial of the huge treasure.  In the final fight, Mackenna overpowers Colorado and reaches Tibbs' horse having two saddle bags of gold.

Mackenna and Colorado, if they were to be alive today, they would have again ventured to dig the buried treasure of gold.  The gold price has shot up this year by a whopping 43%, and many of us are repenting for not having invested in gold earlier!  'Why gold price has shot up like this,' is now the most discussed topic. Let's try to find the reasons.

1) Pandemic Covid-19:

Pandemic Covid-19 has crushed the economy of the entire world.  Almost all countries are implementing huge relief packages triggering inflation.  To mobilize resources governments are liberally printing currency adding to the sky-rocketing rates of inflation.  In such a situation, people are investing in gold as a stable alternative.

2) Falling interest rates:

Since the outbreak of the pandemic, interest rates are falling all across the world and as a corollary, the gold price is shooting up.

3) Stock markets are defying the pandemic logic.

In spite of the pandemic pull down, stock markets are continuing to rule high! Several scrips are above their average value still.  This anomaly has pushed people to buy gold as a better alternative.

4) Gold mining has been affected due to lockdowns.  This in turn has brought down the production of gold, resulting in a fall in its supply.  This obviously has pushed the gold rate up.

During the recession of 2008, we saw unprecedented rise in the price of gold.  It has further registered a huge gain now, due to the pandemic effect.  Whether gold will hold on to its present value is a matter of speculation.  

People investing heavily in gold is not good for the economy.  It only results in squeezing of liquidity, much needed for the development of the economy.  People all over the world are hoping that a Covid-19 vaccine would be ready soon, which is the only hope to end the uncertainty.  

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Tail Piece:

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