George, thanks for that follow-up article.
I have been confused (or undecided) of late, and I think the gold markets are the same. My confusion has centered basically over:
Bonds. I don't see pressure on rates rising, yet. More of the opposite. I may be in the minority here, but the charts, the bear/bull bond ratio, the state of business investment (or maybe the lack of such a state), and the Fed all to me point to further drops in rates.
Dollar. LT we all agree it is heading down.
Commodities Index. Don't know exactly where this fits in IT, but seemingly best with a falling dollar.
This is not a normal situation, based on my limited history of the markets. Or is it?
If rates were going to go up, and the dollar were to fall, I think gold would have sailed a long time ago. It is battling a cross current situation, and has been for some time.
Additional to all that my exposure to gold has been too light, given the times, hence accumulating dab by dab and did some more as of today.
I also am getting very bearish the gen markets for the IT and in fact think a huge dump could be in the making. This dump is a when, and when this time will be accompanied by some major hurt and some major capitulation,imho.
I remember things, we all do.
Lately I remember more and more a recent quote by Slider and it went something like "I believe the western financial system as we have known it is in a state of systemic collapse." It is in one of his old posts.
And where is Slider these days? Hunkered down buying more gold I would suspect. |
