Continued: "What bothers me the most is the blame some place on Clinton for the bear market in gold."
What most people on this thread don't realize is that Gold and Gold stocks are the ONLY asset class which the U.S. Government has a vested interest in keeping the lid on, whether the Republicans or Democrats are in power. There is NO other asset - no currency, no stock, no bond, no real estate investment, no retirement fund, no derivative, that has seen its price purposefully pushed DOWN by Government.(OK, Richard, I admit it, but I take that as a given.) All the asset classes which Americans invest in are dependent upon the health and well being of the U.S. Dollar. The health and well being of the U.S. Dollar is threatened by NO other asset class - EXCEPT GOLD.
A BULL market in Gold would be a potential catastrophe for the U.S. Dollar. Why else do you think that guys like Tevee, Ken Benes, Ron Reece and a host of other gold bears, post their perma bearish Gold thoughts here?
Greenspan is boxed in. Stagflation is now here and may get much worse. Stagflation is the best environment for gold stocks. The alternative is extreme Deflation, which is the second best environment for Gold.
The risk here is not being long gold stocks in spite of short term overbought readings.
PS I continue to buy Gold Bullion and Gold Stocks on every single dip. And this is coming from someone who loves high tech more than Gold. |
