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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Jim McMannis who wrote (34728)8/2/2005 12:45:45 PM
From: regli  Read Replies (1) of 116555
 
I think you are underestimating what will happen when the RE bubble pops. I believe that we will see a rush to safety and gold is likely to benefit significantly.

Also, I expect Asian CBs to increasingly acquire gold as they want to retain purchasing power but have difficulty investing their dollars.

And lastly, gold isn't just driven by inflation. Check out the performance of Homestake during the depression. The likely issue at this point preventing a significant gold rise is the "Goldilocks scenario" and a relatively flat yield curve.
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