Paul,
<<Nevertheless, I think the short term outlook for Gold remains grim. There's nothing to stop Central Banks from selling and they have 3400 tons. Gold will only up whenit becomes clear that what the CB's are trying to do (i.e., support paper currency) must ultimately fail and/or when govts are forced to inflation.>>
Central banks have 33,000 tons of gold - not 3400 hundred. In actual fact, ovet the last few years the cb's have actually sold only a few % of their gold .... they are not stupid. All of this talk of CB sales is just one more tactic of the power brokers.
When I view gold vs. equities, gold looks to have a hell of a lot further liklehood of going up - compared to equities, which look to have a hell of a lot futher likelhood of going down down.
It is clear that the powers to be are keeping a tight rope on gold; an equities market that starts to crumble would be disaterous. What we are seeing now, is a fiat market unlike anything we have seen before - being pushed on with the hard earned money of the average "Joe" .... despite what the "talkingheads" would have you believe, one of the greatest financial armagedons you have ever seen, is unfolding before your eyes. Instead of war hawks with their fingers on the nuclear button, we have "fund manager hawks" with their fingers on cash reserves like they have never seen before .... so much money, with so few places to put it. As far as hedging goes, they can only hedge so far, and then that house of cards crumbles too.
Whether it happens tomorrow or 12 months from now or 24 months from now - it will happen .... the writing is already on the wall.
MB |
