Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: westpacific who wrote (102695)	10/1/2009 4:05:52 PM
From: Krisyy5	2 Recommendations Read Replies (2) \| Respond to of 116555

Could you please elaborate on this prediction?

To: westpacific who wrote (102695)	10/1/2009 8:01:59 PM
From: Liberty Eagle	3 Recommendations Read Replies (1) \| Respond to of 116555

This is quit interesting in light of the strength of Au today in the face of the equity sell off and could help explain what Fleck wrote last night; Gold-Denominated Developments Now to share some comments from a metals trader at Goldman Sachs (whom I happen to think highly of). He made an observation that I hadn't considered, in terms of illuminating the fact that gold is money and not just some barbaric (even if it's been money for several thousand years) relic: "As always, the gold market generates huge emotion and polarity of views, the likes of which I cannot think of for any other product. For those who question its legitimacy as a currency/monetary asset, there are a couple of interesting developments. Market chatter is rising that one of the major futures exchanges will accept gold to be posted as initial margin across all products traded, including FX and fixed income. Also, India, which is the world's largest consumer, is rapidly growing a Rupee loan market collateralized by gold." Developments such as this, along with central-bank buying to replace central-bank selling, will create more demand for gold -- a situation which would be exacerbated by stagflation, in my view. fleckensteincapital.com The "Dollar" may survive but FRN's would not. A gold backed dollar may be in the offing.