Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (60711)	1/23/2001 11:18:39 AM
From: Lucretius	Read Replies (1) \| Respond to of 436258

EIX and PCG look like they want to go bankrupt tomorrow.... -ng-

To: pater tenebrarum who wrote (60711)	1/23/2001 11:21:01 AM
From: Lucretius	Read Replies (2) \| Respond to of 436258

VIX is collapsing... not bearish

To: pater tenebrarum who wrote (60711)	1/23/2001 6:55:22 PM
From: KyrosL	Read Replies (1) \| Respond to of 436258

Heinz, in the thirties gold was money. Therefore, it protected against deflation by definition. Now, gold is largely demonetized. Therefore, I think, its deflation protection is almost non-existent. I think the best protection against deflation is being debt-free and having a substantial portion of your assets in cash equivalents. I bought gold stocks as a hedge for three reasons. One, the dollar is overvalued, given the massive US trade deficit, so gold stocks act as a currency hedge. Two, the Fed will respond to the deflationary threat of the massive consumer and company credit expansion with a massive reflationary effort that has the potential of triggering inflation, and gold stocks are as good an inflation protection as any. Three, the OPEC energy producers are now in the driver's seat, largely because they are very close to their production capacity limits, so energy prices will be steadily trending up, and this will exacerbate reasons one and two.