Saturday, 12 September 2009
Information About Gold state that gold is going up and up
I personally have been in the deflation camp for some time now, but am now starting to come around to the inflationary side. Here’s why:
I wrote awhile back that I thought oil was a better hedge against inflation just because of the utilitarian value of it vs. gold. This sent the gold bugs into a tizzy. Well, I’m now firmly in their camp.
…this time we’re going to see the pop in gold price that the gold bugs have been waiting for.
The reason I think we’ll see gold move disproportionally higher than oil and other commodities is because gold is more of a tradable asset and is not something that the average citizen will be affected by.
I would not be surprised for market in oil “act irrationally”, meaning there will be some outside force acting upon it (perhaps selling out of the Strategic Petroleum Reserve?) to keep prices lower in an attempt to keep the masses at bay.
…long oil is not the play, money will flow to gold. This is something that the administration can live with as well as the average citizen.
Not to mention the gold bugs, who’ll be dancing in the streets!
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