sdavid0419

Speaking of Gold...

Inflation began when oil prices soared post Katrina. Then in what I call the pre-election collapse of oil prices actually caused deflation. Now oil is once again on its trek up as the oil companies spend millions to keep Congress from acting on T Boone Pickens alternative energy plan. At the same time the banks are paying off their government loans as fast as possible so they can get back into the poker game since the government has failed to take action to put an end to the risky behavior. Oh did I mention the banks are spending millions to keep congress from doing that.

I had some significant gains in gold's run up. I'm the type that takes a short profit and runs at the first sign of a sell off which is how I was able to get some gains. Somehow, I have resisted selling off my current position through several cycles as I am so sure that Mr. Bernakes printing of money will cause hyper inflation and that the gold I'm holding is only an insurance policy. I don't expect it to be worth a gazillion dollars like most gold bugs but I do feel it will be worth more than the dollar once inflation sets in and that is a fact I'm relatively certain of. I vividly remember the Regan years when I was not market savy and I don't want to go there again.