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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (43648)	10/17/2005 1:49:42 PM
From: ild	Respond to of 110194

Date: Mon Oct 17 2005 13:35 trotsky (James) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved "so i must conclude that POG doesnt necessarily need the inflation component to do well. " that's exactly right imo, and happens in fact to be Bob Hoye's argument as well. Hoye believes that gold's anticyclical role actually is more pronounced in deflationary than inflationary downturns, as its real price, or purchasing power, rises more sharply in deflationary downturns. this view is strongly supported by the historical record. as an aside, Hoye has also expressed a steadfast belief that gold and the dollar would begin to rise together when the next business cycle downturn begins, and so far he has proven correct in this as well.