waldipup

Gaza War: Expect a Spike in Oil, Gold

There is no reason to make an observation that gold will rise , or that oil will rise , if the mideast conflict widens.

The current conflict is limited such that it should have little effect on either.

The likelyhood of a widening conflict based on the current circumstances are extemely low -

Virtually the same as at any other point in time.

So I dont think the premise of the article warrants it's being written in the first place.

Where Are Precious Metals Heading?

There is no question whether gold should rise on a fundamental level.

The cost of a slice of pizza has risen more over the years due to dollar dilution than gold has.

But yet gold is fairly priced/overpriced?

The real question is how long can the gov't. keep printing money and still retain credibility.

No longer?

Another year?

Another ten years?

Nobody knows.

How can you keep bailing out financial entities for countless billions of dollars , fund social security , medicare/medicaid , and the myriad of other government expenses (including interest expense)

and just keep on truckin?

Anybody see the vertical increase in gov't. spending and borrowing over the last decade?

How do you justify that without an income equivalent?

But nonetheless , though the goldbugs (like me!) are fundamentally correct , (Larry Kudlow notwithstanding) ,

the real question is the timing , and being correct on the fundamentals but a decade or more off on the timing of how long a long term powerful government can keep on chooglin' on fumes could possibly be tantamount to being wrong "As Time Goes By".