BIZ WATCH: Jul 28, 1997

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Gold prices have steadily declined since the '80s because with roaring stock markets and low inflation worldwide, sitting on noninterest-bearing gold makes little sense for governments. "There's no point in holding it," says Dale Henderson, a gold specialist at the Federal Reserve. That's true for individuals too. It doesn't mean you should sell your jewelry at a discount. Inflation could someday return, and besides, T-bills make lousy necklaces.