Carl Spackler

The Next Bubble?

The initial winds of this market are deflationary. Like a battleship, this economy needs time to get its momentum going - in this case its inflationary momentum. Gold might fall to $700 if some of these new gold investors become worried when they do not see instant inflation. After all, many of them are anxious for instant results that we all have come to expect. Six months to a year down the line, however, they may finally have the U.S.S. inflationary battleship going strong. Then you may see Gold finally rise.

Right now, too many GoldBugs are on the train and the weight is too heavy to take it higher. Timing seems right to lighten the load by having a good selloff.