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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: jimsioi who wrote (16813)	12/27/2008 4:06:48 PM
From: GROUND ZERO™	Respond to of 29622

I refer you to Newton's third law of motion, i.e., "for every action there is an equal and opposite reaction." This means there will be an economic blow back to the current stimulus packages. Once the economies of the world begin to kick in, we're going to see uncontrollable inflation. Mind you, the previous inflation cycle didn't last forever, and neither will the current deflationary phase... Markets will always look ahead, the time to buy an inflation hedge is when we're entering a deflationary phase... as they say when trading these markets, be fearful when people are greedy, and be greedy when people are fearful... gold is an absolute bargain at these current levels, especially when no one wants it... do you think crude oil and all commodities will remain at these lows levels forever? I'm long all of them...<g> GZ

To: jimsioi who wrote (16813)	12/27/2008 5:16:44 PM
From: kayco	Read Replies (3) \| Respond to of 29622

Jimsioi - I agree. Today Niall Ferguson in FT was speculating re 2009 said: "Any hope US could depreciate its way out from under its external debt burden faded as 10 year yields stayed high and the dollar held firm." This is just his speculation on 2009, but if dollar stayed high this would not be good for gold. The thing that gives me hope is that gold shares stayed sky high during the depression. The only way I can figure this out is that the gov. bought all the gold you could produce at $35.00 so gold miners were the only factory that had a guaranteed market and could produce at 100% during the depression. Gold "factories" at that time were in reality disconnected from deflation since gov. had fixed the price of gold.