DenisL

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.

Get Out of Commodities - Barron's

Jersey:
"This is absolute insanity.......Half of the the "experts" are screaming to get out of commodities as quickly as you can while the other half is screaming to get into commodities as quickly as you can."

And you know what is really scary. Both halves are LIKELY correct. I too am bewildered.

Just hang on to your job and to your gold. You may not get rich but you will eat and you will NOT go broke. You could get rich. Maybe not. But at least you will not be broke.

Maybe have BOTH gold and have cash FDIC insured. I have a friend who just bought a 4 year CD at 5% interest. He may be nuts but who knows, maybe I am to think that he is.

This is just a wild time right now. Who knows what the Plunge Protection Team is going to do? You tell me how to plan for NEW regulations, an unknown President in January, both inflation & deflation at the SAME time, and a creative Fed Reserve Chair who likes to print lots of money but does not seem to affect inflation or the M1 money supply. Something is whacky. Are the formulas fudged? It is all very wild and crazy AND unpredictable.

A war in Iran would provide a lot of excuses for a lot of people right now AND make many folks even richer. Hang on it is going to get exciting. You ain't seen nuthin yet.