mr freddo

Precious Metals Are Bullish on Pullback

If you have a position in gold to hedge your portfolio, it is days like today that you don't like. Your portfolio is dropping and so is your gold hedge.

Mr. Sanaullah is preaching to the choir here, the choir being gold bugs and survivalists. While gold is pulling back from its recent highs, with more bad news and financial carnage ahead, it is hard to see gold falling much more since it has become the investment of last resort for many.

I agree with Mr. Sanaullah that now is not the time to lock into anything illiquid. This economy continues to deflate all asset classes so bonds may look appealing.

Inflation seems nowhere in sight and would actually be a sign of recovery as would rising interest rates. But at some point, inflation will start to ripple through the landscape and then the genie will be out of the bottle.

Mining Indaba Conference - Even the Bears Are Bullish on Gold

This year will be worse than 2008 for all investment classes including treasuries with the exception of gold and silver. They will be perceived as safe havens and will perform as such.

At some point, the price of gold will intersect with the Dow.