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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (49709)	4/16/2006 8:42:47 PM
From: orkrious	Read Replies (1) \| Respond to of 116555

the question then becomes will gold correct 50% from the current 600 level or the 1,200 level, on its way to 3,600 or will that correction come from the 3600 level?

To: TobagoJack who wrote (49709)	4/16/2006 8:43:24 PM
From: regli	Read Replies (1) \| Respond to of 116555

I used the term collapse not in necessarily price devaluation terms but in as far as valuations of anything would become extremely difficult in such a situation. Therefore, at such a point, paper money would likely be worthless as exchange and barter would reign. In reality though, I consider it highly unlikely that it will get that far. I presently think the scenario that Cheuvreux (Credit Agricole) painted is quite likely. I therefore wouldn't be surprised to see $900 gold in the next 2 years with a potential spike to $2,000 accompanied by a vicious return to the $800 to $900 level from which it will proceed in fits and starts to $2,500 in 2012. BTW, I will sell at that first spike to $1,800 and then buy in lower again… <g>