Mike Norman keeps using that same argument that gold is a bad investment. Its not an investment its a hedge against inflation, a way to protect your weath when the central banks are being irresponsable. You cant just buy it at anytime. Peter has never said you can just buy whenever and hold it forever.
Mike Norman doesnt even know the first thing about economics, we are in a recession and we need to let it happen, its part of the system when you have a fiat currency. Trying to postpone it will make it worse.
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I agree with your natural resource investment idea, and yes gold stock is speculative. But if you believe in the fundimentals you can speculate and should but not with the majors you have listed. The mid tier and junior stocks have much more upside potential.
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You make a good case for future supply and demand, but you barely hinted at the collapse of the dollar. That is the main reason oil, gold, copper, agriculture are all going up. The dollar is going down due to out of control inflation. You cant buy as much on a global market with a weak currency.
Please don't respond that inflation is only at 3 or 4 percent, thats a bunch of spin we are at double digits at least. The US doesnt even add food and energy in its inflaton numbers, how convienent.
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I don't care about India's demand or South Africa's power woes, the dollar is in big trouble and that's enough to keep in bullion and mining shares for the long term in this bull market. Treat it as a chance to buy.
McCain with war spending or Dems with healtcare spending and tax increases, either way we are screwed. We need to cut government spending and no one (except Ron Paul) is talking about that.
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Look at South Africa, they are going to have power problems for the next 5 years. How about countries that nationalize assets? What a waste of an article.
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Good analysis but the term "commodity inflation" is misleading. Inflation shows up in commodities but that is a result of money creation which is, by definition, inflation.
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Mike Norman doesnt even know the first thing about economics, we are in a recession and we need to let it happen, its part of the system when you have a fiat currency. Trying to postpone it will make it worse.
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Please don't respond that inflation is only at 3 or 4 percent, thats a bunch of spin we are at double digits at least. The US doesnt even add food and energy in its inflaton numbers, how convienent.
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