The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Live2Sail who wrote (150096)	9/25/2008 12:53:26 AM
From: patron_anejo_por_favor	Read Replies (1) of 306849

I'm pretty doubtful the mining stocks will perform well if we have a sudden deflationary collapse. I'm very certain we'll see most paper assets (ex-government bonds) collapse in such a scenario. Especially other debt instruments (which we are already seeing) and stocks. Gold will benefit from a movement out of paper towards liquid-yet-non-obligated assets. Basically a flight to safety and away from dollar-denominated assets. Oil doesn't quite meet this because you must rely on futures markets functioning and on reliable counterparties to get paid. Gold (and I'm speaking of bullion only) can be held away from the interlocking chain of promises that our financial edifice is built on. That is it's one relatively unique characteristic that puts it at the top of the heap, or at least as a viable alternative when all the others crash. It won't be a pretty world when it happens, but it's a last line of defense. A financial free safety, as it were.

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