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Gold/Mining/Energy : Gold Price Monitor
GDXJ 92.99+2.9%Nov 7 4:00 PM EST
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To: Crimson Ghost who wrote (13618)6/21/1998 3:05:00 PM
From: PaulM  Read Replies (2) of 116753
 
George, I think the US $ and AU both look good against just about everything else. AU remains a flight to quality asset, certainly at these $ levels. I suspect Armstrong is short the metals and generally takes a very short term view (like his bond rcommendation, which will continue to be among the worst performing assets in the long run).

I admit I expected that "flight to quality" buying would have a greater positive effect on AU than on the $, AU being a much smaller market. But even if AU remains just stable against the $, which seems the most likely scenario now, I think the best approach is to just build up liquid savings, in the form of gold and silver.

That approach has little downside and will enable some smart folk to participate in what promises to be an unprecedented wealth transfer. Within 2-3 years, AU begins to beat the $ because

1) stresses now causing flight to quality will become stresses for the U.S.

2) calls do "do something" will inevitably burden publicly held assets, like stocks and bonds. There are lots of rich people out their who will be looking for stores of value that can be buried in the back yard and have no social security numbers stampe don them.

3) given a choice between defaltion and inflation, the U.S. and the Fed haev shown a preference for the latter.
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