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

To: Wyätt Gwyön who wrote (45039)	11/8/2005 1:54:08 PM
From: TimbaBear	Read Replies (2) \| Respond to of 110194

i would say it's not as straightforward as gold hypesters have implied... I think caricaturizing those who believe that gold prices are likely to increase from here in this manner may make arguing against the notion seem easier, but may not really address the issue of whether or not they may be on to something. I would not refer to myself as a "gold hypster", in fact I rarely talk about it. However, for the last several years I have placed a substantial portion of my investable assets in mining companies and, if performance of those shares is any vindication, have been proven correct in doing so. Whether fiat currencies are able to maintain the profligate fiscal irresponsibility or not I don't know, but there is always a price to be paid at some point. Will it result in the end of fiat? That outcome seems inconceivable, yet so does debt on the order of magnitude it currently exists, so who knows? That some kind of corrective action will occur seems more certain and almost any correction seems at least likely to have a somewhat positive impact on the price of things measured in tangible values, gold being one of them. ....you have to rein in the growth, and CBs will do this. just look at Brazil and their 14.5% real rates. And what happens to gold priced in USD if we see similar rates? I'm not a gold bug or hypster, don't wear a foil hat, and I don't think money grows on trees or should normally fall out of helicopters. I just think that commodities are still early in their cycle and some of the fiat currencies valuations are late in theirs. Timba