DenisL

Gold Poised to Move Higher

On Dec 28 10:09 AM otbricki wrote:
> Sooner or later people are going to realize that value of gold is
> psychological only, and our past obsession with this metal will be
> regarded as a historical curiosity.

Yep.
And believing in paper money is also psychological. Our fellow humans CAN print as much as they want AND DO.

Physical gold can not be inflated.
EVERY country in the world is inflating its paper money right now.
Does that make you feel safe?
They are in a race to the bottom to see who can inflate the most and help their trade balance the most.

Does THIS help your psychology?

Look the choice of what to believe in for money is arbitrary. No system is perfect.

I trust the free market. I do not trust my fellow men, when they are politicians needing to print more money for war and for government programs to "help" our fellow man and to "help" get them re-elected!

Monetary policy, particularly inflation, has likely destroyed more countries and killed more people than war has, especially when you consider that monetary policies have led to many wars.

Let the market choose.

The Bedrock Case for the Return of the Gold Bull

Gold is a disaster hedge...not an investment.
It is for times of war, hyperinflation, banks failing and governments going crazy with spending. It is NOT an inflation hedge unless it is hyperinflation.

I still think we are in for some VERY rough economic water (at least another $1 trillion dollar loss in the housing markets) AND the powers that be will need a WAR to distract the masses from the economic problems/fallout. Before then we WILL see some price deflation. Hang on to your gold if you can not time this. Sell your gold if YOU can predict WHEN the next disaster will hit. In ANY case with the current folks in charge it is silly NOT to have at least 10% of your assets in gold at ALL times, more if you think, as I do, that disaster is looming. Deflation in housing prices WILL not help the heavily leveraged financial markets AND no one is predicting a rise in housing prices until late 2009 or early 2010, the housing bubble is still popping even if there is inflation in other areas. I think that one could sell gold now IF you believe we will NOT be in a WAR in the next year. AND then buy it back again once the gold bubble has popped. I do not have that kind of nerve. I will hold on to gold AND sleep better at night.