gold near touch of 313, beautiful thing
nice long steady rise to 350
then jumpy moves past 400 next spring
microcap gold miners stock price activity will resemble early and mid-1990 internet stocks
get in on the ground floor
and quit wasting time fighting within the charred collapsed remains of the tech sector
the big missed mega-market truth is that when a bubble breaks, it remains broken until the underlying causes are resolved
and tech's debt, fallacious accounting, and ended Y2K sales impetus are now being resolved
it might another couple years, minimum
most commodities are cheaper now than at any time since 1929
on an inflation-adjusted basis
that is where the pricing power is
I see a Pricing Bifurcation underway
any products based heavily upon debt for production and purchase, enjoying mass production, and appealing to the whims of consumers will be subject to heavy DEFLATION for some time
any products based on the cash market for purchase will be subject to heavy INFLATION for some time
(try paying for your heating bill with credit)
this includes most products that are managed via govt-sponsored utilities
this debt basing relates closely to luxuries versus essentials on a near extreme sense
PC's, airline travel, electronic gadgets, games -- LUXURY ITEMS
food, electricity, heat, gasoline, methane gas, insurance, gold -- ESSENTIALS
essentials will rise in price
luxuries and non-essentials will drop in price
chaotic co-existence between INFLATION and DEFLATION
/ jim |
