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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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From: John McCarthy11/16/2006 8:10:18 AM
  Read Replies (2) of 78413
 
just parking these thoughts from MISH ....

>>>>>>>>>>>>>>
Gold does well in two situations
1) hyperinflation (or severe inflation)
2) deflation

Gold does horrid in disinflation (as noted by the fall from over 800 to 250).

Mish
>>>>>>>>>>>>>>

Message 23015245

>>>>>>>>>>>>>>
If you have a second, what is the short answer to the difference b/w deflation vs disinflation? (as it relates to gold)
Thanks Mish!
>>>>>>>>>>>>>>

To: worksinjammies who wrote (74169) 11/15/2006 11:25:48 PM
From: mishedlo Respond to of 74188

>>>>>>>>>>>>>>
Disinflation is a reduction in the rate of inflation.
In disinflation, inflation is still positive but at a decreasing rate.

In deflation there is an actual contraction in inflation.
Inflation is negative.

as it relates to gold...

It is the K-Cycle
Gold performs horrid in Autumn (disinflation) and that is when stock do best.

Gold does well in actual deflation when the purchasing power of gold rises. In Autumn gold (and currencies in general) are trash. In deflation gold and money in general are hoarded.

Mish
>>>>>>>>>>>>>>
siliconinvestor.com

This chart - I think - argues with Mish's idea
about gold and autumn. But I could be
misunderstanding what he is saying ....

30 and 15 Year (seasonal) gold price chart
321gold.com

regards,
john
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