Barry Sotoero

Gold as a Truly Last Resort

I believed that at one time gold may be the investment that it was in the 70's. I am starting to think otherwise, it is starting to appear that with all other countries in the world devaluing their currency so fast, that the only real stable currency to fall back on is the greenback. I think this seems to be causing gold to fall short. I truly hope that this is short term, since I have been long gold for fear of high inflation from a devaluing of the greenback by the federal reserve. It will be a waiting game, but I know that if we do have a substantial rebound in gold stocks I will be taking some profits and will lighten up on my gold holdings.

I have been studying the past performance of the options market that occurred throughout 2008 and I believe shorting banking stocks and other financials may be a place where big money will be able to made once more.
There will be a second round of failures, maybe as large as the previous to come in the next couple months. Alot of people with 3 year arms have not been able to refinance and these loans will be adjusting between spring and summer and the next wave of defaults and bailouts are just around the corner. Deflation seems more likely in the short term (2009) then inflation. Hopefully I am incorrect but the finger is pointing in this direction more each day.
Good luck to all and if anyone has an opinion on my statements please feel free to comment.