With prices of homes, commodities, stocks, energy, and gold moving lower, clearly we're now in a deflationary phase... this is due to a worldwide tight credit environment... in fact, credit is so tight that world governments have to add liquidity into their financial systems in order for money to flow again... in this kind of environment, we're going to see prices continue to move lower...
Once the liquidity injections take effect and there is worldwide growth once again, then we can see inflation begin to emerge...
As I see it, the fact that gold is moving lower is only good news, we can now accumulate at better and better prices... once the deflationary cycle is completed and the global economies begin to flourish, I would expect to see gold begin to move higher and exceed $1,000 per ounce...
Anyhow, that's my story and I'm sticking to it...<g>
GZ |
