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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?


To: SliderOnTheBlack who wrote (10807)7/17/2008 2:53:36 PM
From: ecrire  Read Replies (1) | Respond to of 50101
 
Slider, yesterday you commented that Gold had not reached its highs; yet this post sounds very negative to gold investments.Frankly, I don't know how Gold acts in severe deflationary times,which you are predicting, but probably cash becomes king, dollar rallies.not good for gold.



To: SliderOnTheBlack who wrote (10807)7/17/2008 3:00:19 PM
From: jim_p  Read Replies (1) | Respond to of 50101
 
Good points!! Sounds like we're on the same page.

We're several years into the housing downturn, but just a little over a year into the process of deleveraging the financial system/consumer.

My guess is the time needed will be 8-10 years which gives us another 7-9 years to complete the process.

I have a feeling the markets are beginning to wake up to a change in perception from inflation being enemy #1 to deflation and more people are beginning to realize that the process will take a long time to complete. The bond market seemed to have it right before the equity markets.

Many of the commodities seem to be rolling over and since oil is priced at the margin it has a long way to fall once the markets recognize a change in direction.

I was luckily to put 50% of my IRA into DTO the day it fell below 21. A gift from the market gods and now up 30% in less than a week!!

Jim



To: SliderOnTheBlack who wrote (10807)7/17/2008 11:45:40 PM
From: JimisJim  Respond to of 50101
 
Cheap or free interest in the face of deflation is like pushing on a string to stimulate, alleviate or avoid reality.

Jim



To: SliderOnTheBlack who wrote (10807)7/23/2008 4:27:04 PM
From: Amark$p  Read Replies (1) | Respond to of 50101
 
SOTB: would appreciate your thoughts on gold during deflation

your comment:
"there is also a huge misconception about gold and deflation that's been passed down to the gold bug faithful. And those misconceptions and myths will end up destroying more wealth among investors in gold, than all the central bank dumping, and manipulation ever dreamed of doing."

FWIW, the attached link coincides with my thoughts on Gold during Deflation:

newsmine.org

Would appreciate your thoughts on gold during deflation and your thoughts on above article. Thanks.