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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 375.93-1.8%Nov 14 4:00 PM EST

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To: pogohere who wrote (78049)8/20/2011 5:46:47 PM
From: TobagoJack1 Recommendation  Read Replies (1) of 217800
 
<<the gold bulls may be quite surprised by how much gold/silver can correct before QE3>>

am thinking perhaps not this time, because this time it would not just be the banks, but the entire socio-economic fabric and the total monetary system that is tee-ed up

anecdote

hkg real estate crashed 50% during '98 asian financial crisis, fully recovered w/i 18 months
cratered 70% during '03 sars, recovered within 18 months
wobbled during '08 lehman crisis for 3 months not in price but in trading volume

so, gold cratered in 1981 from 850 to 250 in 20 years, recovered in nominal price just a short time ago
gold wobbled during lehman crisis when all were flush with leverage-purchased papered created by the likes of lehman

gold may not crash again
as many if not most are high cash, low margin debt, and, to paraphrase a cyber pal,
"trillions shall burn before a single ounce of gold would melt"
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